Take a 10k losses in exchange for eliminating Hamas + PIJ, and displacing 2 million people, distributing the refugees to countries around the world. Destruction of your enemy in your south forever.....easy decision to make. They just never had the political capital to do it, now they do, and all it takes now is willpower.
If they don't displace every soul there, Occupation means they also get to police the Egyptian border i.e. good luck getting anything good through to create armed resistance, It will be like the west bank which is really nothing more than a pesky problem to them, than a genuine threat.