And you still haven't addressed the original question: What should Israel have done?
laughing dog said:
First, act like sane responsible adults instead vengeful genocidal maniacs to reassure the public that they would hunt down and bring to justice the perpetrators, and work to free/ rescue the hostages. Second, start gathering the intelligence and making plans to either seize or assassinate the perpetrators and free/ rescue the hostages .Third, carry out the plans. Yes, it would take time and be less viscerally satisfying to the racists, and revenge seekers.
And what were you smoking when you came up with this "plan"?
Reassure the public that they would hunt down and bring to justice the perpetrators is babble.
Work to free the hostages? Hamas will want too much for them. Any deal Hamas would agree to would kill far more than are currently being held. Israel unfortunately has a track record of making big concessions for hostages, there won't be a sane price for their release.
Rescue the hostages? Have you forgotten where they are? The only way the IDF can do this is to invade--and a ground invasion would be far worse especially if the tunnels haven't been destroyed first. In case you're not aware of how this sort of thing works any building with defenders is removed. All paths are secured--but if the tunnels are still there any building could have a hidden tunnel, thus every building would be removed. Look at what's left of cities that Ukraine/Russia fought a ground battle in--Gaza would be a lot worse because of the tunnels.
Gathering intelligence? Sorry, they are limited in this regard by the lack of contact between the two countries.
Seize/assassinate the perpetrators? That's back to the invasion approach.
Until you have a sane plan don't criticize what the people who do know what they're doing come up with.