Is this different than how Israel sees all Palestinians as Hamas? ... Because Israel has made it clear that it won't stop bombing Gaza until all of Hamas is dead and it looks like they won't believe they've done that until there's no beating hearts left on that side of the prison walls.
I mean, the only way to make sure nobody will try revenge is to exterminate everyone involved.
Realistically though, Netanjahu and his allies don't want peace, just like the rulers of Hamas (which are not even in Gaza, btw). They both profit way too much from the conflict, especially if it's just on slow boil.
They are literally the poorest souls in that shitshow (and that does not mean any hostage deserved it, it's just a race to the bottom)- some underpaid farm hands, just trying to help their families get by, citiziens of a country which has little chance to pressure Hamas much while their death would mean a massive blow to israels economy (because it would lead to most Thais leaving very likely) and a small victory for the Hamas as the Thais are not well viewed upon by Palestinians as the jobs they now have had been done by them. From their point of view, Israel would have been unable to make obtaining work permits for Palestinians so much harder without the Thais willing to do the jobs.
I have read that many foreign workers were taken as well. Just people who came to Israel to make some money to send home to their family got caught up in this.