““Let Egypt annex it and stomp out Hamas.””
But Gaza belongs to Israel.
“Gaza was part of the Ottoman Empire, before it was occupied by the United Kingdom (1918–1948), Egypt (1948–1967), and then Israel, which in 1994 granted the Palestinian Authority in Gaza limited self-governance through the Oslo Accords. Since 2007, the Gaza Strip has been de facto governed by Hamas, which claims to represent the Palestinian National Authority and the Palestinian people.”
“But Gaza belongs to Israel.”
True, but it might be more trouble than it is worth. Since Israel pulled out and gave them autonomy, they make no money on Gaza, but still incur lots of costs. The population is a demographic bomb, that Israel does not want to incorporate and grant voting rights. It is a den of terrorist vipers, and Egypt can go third world on them, whereas Israel is restrained in the tactics that they can use.
The question is whether Egypt can be trusted long term, or if an islamist regime might be back in the future.