Hamas wants to trade those hostages for Palestinian hostages. Which have been imprisoned for decades.
It is a tale of “Israel started it” and the Palestinians have no other possible way to make demands from Israel than using the same tactics.
Israel openly says they will continue the destruction. Even if Hamas releases the hostages. Their government does not care about hostages. But the Israeli people do. Hamas would be giving up the only leverage they have against Israel by releasing the hostages.
Israel is saying they want to destroy Hamas which is the government of Gaza.
And they are saying they want to control the region. They call it Greater Israel.