What you are implying is that Hamas was operating as a Warring Party, and treating civilians as combatants. Ergo they aren't terrorists by their own definition. Laws being subjective, selectively applied, and therefore meaningless in these situations.
Have it your way. Now Hamas has War. Moreover, it has insisted that civilains are combatants.
Lucky for the Palestinians, Israel is more moral than Hamas and will not operate in the same manner.
Frankly, counter to the apparent interests here of those here who are so offended by the terrorist label, Israel operating solely under terrorism law to bring Hamas to justice probably would have been better for the Palestinians. Though impossible.
But it's obvious that the actual motive here is to try to thread the impossible logic needle that says that Hamas should be left alone after 10/7 because of reasons. Which is a crazy fantasy.