Don't stop there. Most of the Gaza populace are complicit in the Hamas terror activities. Interrogate the populace, one by one, and put them to work leveling the rest of Gaza. The ones who are found guilty of complicity should be imprisoned or hung. The northern third should become farmland, the southern third should become a hard labor camp, and the central third developed by Israel as a tourist destination. All controlled by Israel. Any terrorist activity by Gazans to result in becoming a resident of the hard labor camp.
The best thing to happen for the people of Gaza is to get them to leave. If that’s not possible, then they need to build a new prison similar to what Nayib Bukele built in El Salvador for MS-13 gangsters.
Previously, the southern border of Gaza, the Philadelphi Corridor, had a string of Jewish settlements, who also kept watch for arms smugglers and infiltrators. When Sharon forcibly removed them, the border with the Sinai became wide open. A hard labor camp would not fill that bill. Just bring back the evicted Philadelphi Corridor (Gush Katif) settlers, and give them the latest in defensive and surveillance equipment.
A “hard labor camp” would not happen. It’s a pipe dream. You can’t punish a whole culture, any more than you could punish the whole South for the KKK or all of Germany for the Nazis, or all of China for the Uighers and Tibet. Change the education system, integrate Ghaza. It was a terrible mistake to evict the settlers. The only hope for changing the Palestinians is regular contact with Jews for employment and in daily life. Germans and the Japanese are not the same as they were in the 1940s, because being unequivocally defeated and then occupied will cause a paradigm shift.