I am way too biased and you know my answer.
So, I think Netanyahu has more to lose even if they takeover Gaza because of it being considered one of their biggest intelligence failures and it is not looking good what Israel has been doing at all, and there is definitely a narrative shift more in favour and in sympathy with Palestinian cause.
So, someone was making an analogy on if the Mexican cartel came to attack a city in Texas, and then took back hostages, what would the U.S. response be? To go level the Mexican towns where the cartels are located/stationed with all their families and children? Or, it would be more targeted?
Also, another question should be, if you were a Palestinian resistance fighter that's against a behemoth of a superpower militarily backed with the most powerful Western governments, meanwhile, you've been occupied, ethnically cleansed encroached, starved, caged, and your occupier continues to take over with the end goal of completely annexing occupied Palestinian territories, what would your response be?
This conflict did not start at the Hamas attacks, so in my opinion your question lacks the context why Hamas attacked in the first place as they are on the other end on the defense as the occupied.