Many years ago a coworker made the same argument for the Palestinian side holding that Israel was the intruder.
It occurs to me that a sufficiently irrational position can't be successfully argued against. Sometimes it's best to let the muzzle do the speaking.
In this case, fighting the Paleos achieves little, if the status quo is not changed. And the only way to change the status quo is to deport all the Gaza Paleos to Egypt.
Israel has just been insane not to have done this already. Each and every time, the Paleos just keep getting better and better weapons, and their attacks get more and more effective.
So what do the Israelis think will happen? That if they just kill a few more Hamas leaders, that the Paleos will stop attacking? That they will no longer get support from Iran, and now Egypt?
How many Israelis have to die before they finally say “Enough!”, and push all the Paleos out of Gaza into Egypt?
Is there not enough strife? Will the Israelis feel lonely once the Paleos are not there, attacking them?
Seriously, push them out. The murder and violence will only keep getting worse until they do.
As much as they adore the status quo, it has to end.