If Israel does flatten the Gaza strip, do you really think other Islamic terrorist groups won't try? All it will do is increase the will to kill more Israelis in revenge for what happened. But if Israel decides to break the endless cycle of death and revenge, and instead offer forgiveness and peace, then essentially Israel would be destroying the basic drive that turns ordinary people into jihad terrorists and murdererers: THE WILL. If Israel shows goodwill towards the muslims, and wants to make peace and amends with the muslim state and the terror groups, then what possible reason could Hamas, Hezbollah, and all other terror groups have to waste resources mounting attacks against foreign states? Every terror group analysis by both eastern and western sources defines the will as the weak point: if it is destroyed, then the terror attacks will cease.
I believe that Hamas cares deeply and greatly for their citizens too. Else, why would they feel such rage when ordinary citizens are killed by israeli forces, or want to defend their fellow followers of Islam? The whole point of the attack is because they feel that their citizens are threatened. Think about it for a moment, please. They attack instead of spending time in building infrastructure for their citizens because they fear for their citizens' lives more than their electricity, which is a very valid point.
I know it is a long post, but I would genuinely appreciate it if you take some time to read it and think about my words. Thanks!