Those restrictions are in place for a reason, which Hamas has confirmed on October 7th. And, what suffering does this cause exactly? Gaza had an HDI larger than that of many countries not at war, and had areas described as "wealthy".
Any close reading of this conflicts shows that it is an ideological conflict. Hamas and their supporters in Gaza actually prefer that Gaza becomes a hellhole, to rally allies to their side. Do you really think they want a peaceful and prosperous Gaza? No, they want to blow up the conflict, to energize it, to force a reckoning, with the ultimate goal of reclaiming land from the river to the sea, per their own charter.
Under such circumstances, what should Israel do? Pack up their bags and leave?