First, let me say I love providing a solution even if I know I don’t have the pull to get it to the right people, much less have a hope in hell that it comes to pass—still, my dime.
I understand both Israel's need for safety - with a little vengeance mixed in - and the Palestinians’ need for safety, normalcy, and, most importantly, a future that is possible and safe.
So, here's my solution (which will be difficult and unfulfilling for most regional players).
Current State.
So, let's start with these fundamental truths and then go to my proposal.
Without an exit plan for the future, any resolution will be short-term only.
Israel deserves to be safe
Palestinians in the Gaza Strip deserve to be safe AND have a possibility better life than now.
At this moment, Hamas offers one of the few ways to express disapproval politically. We need to provide a better solution.
Attacks from Hamas into Israel have to stop
Israel's blockade of Gaza needs to stop
Egypt and Jordan won't help, but won't usually interfere.
Proposal (after ceasefire or something)
Israel works with someone (EU, US, Qatar, Saudi Arabia, etc.) to "police" Gaza. We'll call this group the "UN+3" (best grouping, UN + Israel + Türkiye).
The UN+3 will provide for the safety of the people of Gaza via community policing.
Joint police patrols, simple things to build confidence like street police teams made up of at least 1 Muslim each (best case 1 Muslim + 1 Israeli).
UN+3 will undertake rebuilding Gaza infrastructure, starting with the basics like hospitals, schools, and homes.
Construction should be done with Palestine workers.
Israel has to allow food, gas, and water into GAZA.
As areas become stable, more food and water must be let in. There has to be a "carrot" to build a rapport.
Gaza will have local (neighborhood) elections. These local elections will create a mayor and council. This elected area council and mayor will work alongside a UN+3 council board. The elections cannot include Hamas in these councils or aid stops.
ISRAEL should pay the salaries of the mayor and local council - this can be done in a round about way through proxies, but it would be better if Israel did these payments directly. This will help stop the bribery of local officials by Hamas. And, if Hamas takes over the council, payments can stop.
Ensure that even sectors that elected Hamas, which are not seated, should be improved to build a sense of community outside of Hamas
Areas that refuse to cooperate can be left out of plans AND have access to the rest of Gaza cut off via roads.
Don't punish them; just provide a process to be more responsive and the option of joining later without Hamas.
The joint management of the Local Council and the UN+3 will manage monies donated for relief or rebuilding Gaza.
Money destined for physical infrastructure will be focussed on infrastructure.
Humanitarian Aid will be managed by the Local Council - with minimal oversight just to ensure it does not go to weapons.
The UN+3 will check imports for weapons.
As the localities are repaired, governance should be returned to the local councils as far as possible, maybe just keep an observer in the council meetings.
Tada!
I think resolves the biggest issue right now, which is "What Next"? If Israel can't get a reasonable exit strategy, the conflagration will go on. The United States entered both Afghanistan and Iraq without an exit strategy, that did not end well.