So, we agree that abject surrender by either side is not a feasible option.
The only solution can be reached by either Hamas accepting peace with Israel or Israel completely destroying Hamas.
Israel will never completely destroy Hamas. I remember an old I guess pre meme meme with a Russian tank rolling over the word Solidarnosc, with the word reforming behind it, only larger. That is the most likely dynamic.
And of course, if you had asked Israel on October 6, the would have told you Hezbollah was a bigger concern. The underlying issue is not Hamas or Hezbollah. It is why those organizations exist.