Lol, lets just assume for simplicity this is exactly what Hamas demands:
Cease-Fire agreement if we release the Hostages
Israel doesn’t care, they already killed several hostages in the bombing runs. Hell the US probably had to tell them to hold back to give them more time for negotiations. They will not accept any agreement with Hamas, so the only thing Hamas would accomplish releasing the Hostages with no agreement would be an instant full invasion.
Moreover, the actual demands from Hamas are basically cease fire + release arrested hamas members in exchange for hostages. Surprisingly, I don’t think they actually made one of those impossible demands like “cease the existence of Israel’s government”
The reason Hamas is trickling out hostages is because unlike Israel, every other nation does care about the hostages, especially the international ones. Hamas knows this, and can use it as leverage to force Israel to either slow down, stop, or eventually negotiate some sort of agreement. The most important one obviously being the American hostages because the USA has direct military involvement and leverage over Israel.