Of course they have a strategy. It's the F*ck around and find out. HAMAS did an extraordinary attack, they got an extraordinary response. Not just as a message to HAMAS but more to keep Hezbollah in check who Israel fears far much more than HAMAS. Northern Gaza is flattened. Israel will dictate who can go back there, how it can be rebuilt and who will control it. As long as it currently is a parking lot, they don't need to rush to make any decisions about it. While whole populations are rallying to the Palestinian cause, politicians are conveying different ideas. Yes many are arguing for a 2 state solution which Israel has offered again and again but also there is a greater acknowledgement that Hamas can't rule Gaza in any form now. Netanyahu and his right wing coalition might not be fans of 2 states that others have tried but Israeli politics is more nuanced than that and if a serious proposal is put forward by third parties and the PA come to the table, there is a chance. But all this relies on Gaza not being controlled by hamas.