While Hamas has as it's stated goals taking over all of Israel and killing all the Jews, it's made remarkably little progress towards either goal and has often made overtures towards compromise and moderation. Not changing it's charter, but long term peace deals and power sharing arrangements with Fatah.
Meanwhile, while Israel does not claim to want to take over all of Palestine or kill Arabs, it's making steady progress towards the first and racking up quite a body count on the second. But it talks much nicer about it.
If you look at public statements, Israel is obviously the good guy and Hamas the dangerous aggressor. If you look at actions, things are much less clear.
Indeed. Israel should just, I don't know, rely upon the incompetence of people who want openly want to eradicate them from actually accomplishing that goal? That sounds like a plan.
If Israel wanted to take over Palestine, it would have been done in days, a week at most. The IDF also wouldn't care about a thousand or so casualties in a population of millions. Unlike their enemies, that have proven to be quite competent, as any brief look at history (Six Days War, perhaps) will demonstrate.
Also, it's ironic to say that the IDF wants to kill Arabs when it tries to minimize innocent casualties (though it could try a bit harder, no disagreement there) while Hamas openly admits it wants to wipe out Israelis. One side is trying to avoid killing, the other openly craves it. If this is doubted, please give examples of how Hamas attempts to limit civilian casualties.
If Israel wanted to take over Palestine while not overtly committing genocide or even ethnic cleansing because they still need to keep at least the US on their side, it's really hard to imagine a better strategy: herd the worst terrorists into a tiny area, keep expanding into the best land in the West Bank, use the terrorists as an excuse to keep the Palestinians under your thumb, provoke them into violence whenever it looks like moderation might start making you look bad.
I don't really think there's any such grand scheme. I suspect it's far more a matter of short term muddling through and political advantage. Keeping the various domestic parties inline and keeping them focused on the external enemy, cause that gets you support.