“But Hamas is smart enough that they’ll able to use civilians so they can piss off the Arab Street against Israel.”
That’s exactly what Hamas is counting on. At this point it looks like the ground war in Gaza won’t be as extensive as planned. The IDF themselves would likely suffer serious casualties in that scenario anyways and I think Biden is now telling Israel to hold off on their plans to destroy everything and be more selective in their targeting. This will leave Hamas mostly intact so hard to say if Bibi will go along with it.
The civilians will have to be relocated somewhere else. If the Muslim world refuses to accept them, the Israelis will have to build refugee camps in the Negev Desert. Then they can wait out the remaining Hamas terrorists until they starve to death.