From a strategic standpoint, they have no choice. What Hamas is doing is by the book insurgent strategy, that's been observed in Iraq and Afghanistan, and to lesser extents in WW2 and Vietnam.

Commit an atrocity akin to 9/11 to provoke an enemy attack and hide your forces amongst the population. The initial victim (usa, and in this case, israel) must retaliate against such an atrocity, but their only strategic targets are civilian in nature (as all militants are using them as a meat shield).

Once civilian targets are struck Hamas makes pleas to the international community, for aid, sanctions or isolation of Israel. They pander to civilians, as they'll die whether or not they join the insurgency. This balloons their numbers and combat strength.

On top of that, all forces begin engaging in brutal urban warfare with costly casualties for the enemy.

Israel (to their voters and population) can't just "let" Hamas get away for the October attacks so they press their advance, civilians be damned. I believe Hamas are as responsible as Israel for civilian casualties and deaths.

No sides are truly right here, it's merely a brutal dilemma. Not a problem, those have answers, but a dilemma with no good solutions. Potentially be overthrown by an outraged population or slaughter a bunch of civs. You know what all regimes will do.