It’s a failed state that ‘elects’ terrorists who have destroyed any actual opportunity for economic independence or peace.
There’s no way forward with Hamas in charge IMO. But what can be done. Any kind of ‘go in and fix it’ from Israel is going to be terrible in terms of optics even if done with complete benevolence, which it won’t, even if they’re not as bad.
They could just annex it and move forward with a highly inclusive approach, give Palestine the quality of life they deserve. But that wouldn’t sit right with many, for quite fair reasons. Leave a power vacuum? Unlikely to go well.
I think Palestine needs external support and guidence to stand on its own and be a functional state. I’d say that Egypt or Jordan would ‘look’ best to do that. But it raises a huge number of problems.
At the moment it’s basically festering, and things will never improve under the current leadership. What they demand is not reasonable or acceptable, and what they will do until they (Hamas) get what they want is also unacceptable.
So really, it’s a question of whether Palestine will ever deal with Hamas themselves, and if not, who else can/should.