One possible reaction by Israel might have been a focus on treatment of surviving victims and cleanup of the sites that were hit. Then focus on getting the hostages back through negotiations. The talks could have revealed useful Intel as well as retrieving hostages and keeping the world's backing. Pro Palestinian demonstrations against Israel would have been minimal and not well received.

After the hostages were exchanged, use info from them and from the negotiations to determine locations and some specific names of the leading terrorists in the attack on Israel. Then send in special ops to pick off the terrorists. With hostages out of the way, start blowing up tunnels. Use drone attacks on specific terrorists.

There would still be some civilian casualties, but fewer. Continue pursuing the terrorists to wipe them out.