It's a big problem, indeed. Prior to October 7, a large majority of Gazans supported having the PA take over control in Gaza. It's worth considering to what extent waning support and credibility with their own population was a motivation for Gaza in the attacks, given being seen to do something and goading Israel into making themselves be seen by the Gazan population as an obvious villain plays straight into Hamas' hands.

The biggest blow Israel could deal to Hamas would probably be to do the minimum to contain them, provide the PA with access and means, and let the PA deal with it with guarantees of meaningful concessions if/when the PA succeeds in meeting certain targets (that ought to carefully not mention Hamas, but mention things like demonstrating a functioning justice system and ability to secure the borders). To your point of a "neutral" foreign coalition, if granted access by Israel, the PA would potentially be in a position where it could ask for international assistance and try to frame it as allies coming to the aid of the population rather than an attack on Palestine.

But that would also first take an Israeli government that is serious about peace and negotiating concessions, and frankly the current Israeli government seems as caught up in seeing the continuation of the conflict as essential to their own power as Hamas.

In the meantime there's a real danger this will stoke up more radicalism not just in Gaza but in the West Bank as well.