Gaza is a mafia state under control by Hamas, who likely control all aid coming into the country and certainly the Iranian military funding.
Israel seems to apply a 10x minimum response to any Israeli casualties over the years. This attack is well above the 10x number already.
And remember, the Israelis do not completely surround Gaza. Egypt is complicit in closing the walls of the prison on Gaza, and Egypt I'm told hates the Palestinians more than Israel does. I wonder why this is, Egypt did manage/oversee Gaza for 25 years and I guess said "no thanks".
AFAIK, it's not like the Sinai peninsula is some valuable land, I think Egypt has room to take in Palestinian refugees. They simply refuse to do it. I have not gotten any good reason why they hate them. I guess the Lebanese hate their Palestinian enclave. It is clear the Arab world doesn't care about the Palestinians, and a common brotherhood of Islam doesn't carry weight.