Your alternative will only work with sane people.
Hamas isn't a sane organization. They recruit teenage boys to be suicide bombers, they dress little children up as suicide bombers. They list the destruction of Israel as the main objective or their organization. Anyone in Gaza who opposes their ideas and wishes to talk with Israel are usually found dead.
Israel pulled out of Gaza completely as a sign of good will, only to have Gaza turned into a terrorist training camp. Abbas can be reasoned with, Hamas can't be. The problem isn't with Israel, it's with the millions of Muslims who can't tolerate a non-Muslim entity existing within the region. Address that intolerance and then you'll see progress towards peace. Not before.