Under the current rules, the offer Gaza's leaders have is:

Make peace with Israel or else ... You get to siphon billions off foreign aid money. The foreign aid money continues as long as you attack Israel every few years.

When you phrase it that way, peace sounds like a pretty lousy deal for Gaza's leaders.

If genocide was seriously on the table as an option, the offer would be:

Make peace with Israel or else ... we wipe out all of them and your cash cow is gone.

Now taking the peace deal sounds like a better offer.

The fact that Israel isn't going to genocide Gaza gives them a weak bargaining position, which means the other side has no reason to make any meaningful concessions.