The organization of the gunmen has created a situation where military victory comes at incalculable moral cost. Probably intentionally. It is a deep personal test to see which outcome one thinks means "letting them win."

Personally I do not believe it is conscionable to drop a bomb on a bank where the staff is being held hostage even if it would probably hit the robbers.

There is a reason why most of governments don't negotiate with terrorists. Nothing good even came from other tactics in the long term.

There's a huge difference between not rewarding hostage takers with ransom and killing the hostages to kill the ransomers.

Agree, and I don't think Israel has a goal to kill hostages but to eleminate Hamas no matter the cost

Sure, but if that comes at the cost of the hostages they're killing the hostages to kill the ransomers.