Hamas leadership, specifically Sinwar, would rather see every Palestinian in Gaza die around them than agree to do away with their holy mission to exterminate every Jew in Israel. If it wasn’t obvious before, it is obvious now. The only way that Israel can get anywhere in negotiations is by exploiting a conflict between Hamas leadership.
There are other ways to win, but they won’t happen, such as every country cutting off funding to Hamas.
Israel was able to exploit a schism in Hamas leadership to get Hamas to agree in the Shalit exchange in 2011. Sinwar was one of the people in Hamas who was against the exchange despite it ultimately leading to his release from Israeli prison. Al-Arouri was one of Hamas’s negotiators and he reportedly pushed against Sinwar to make the deal happen.
Israel also exploited the conflict between Fatah and Hamas in the past for its own advantage. If there was some way to interrupt the chain of command in Hamas, maybe to cut off the Leadership from the lower level operatives, maybe some progress could be made.