Hamas does not want a return to the status quo. Hamas wants a full lifting of the blockade. Since the last war, they have strongly fortified their positions and dug in, preparing for this war. The problem is that as long as Hamas is dedicated to Israel's destruction, it would be beyond foolish to lift the blockade if they are still running Gaza. It would merely allow Iran to smuggle even heavier weapons in to allow Hamas to prepare for the next war, and the one after that, and the one after that. Like the Iranians who sent children to clear minefields during the Iran-Iraq War, Hamas doesn't care at all about the civilian population in Gaza. It's all about arming, fighting and getting more money from wealthy donors for doing so.

I see that Israel has only one real option available: kill or capture all Hamas operatives in Gaza, reoccupy the whole territory briefly, destroy all tunnels, and turn the area over to Fatah, at which point the blockade could be lifted. Given that many Gazans hate Hamas already, that would be a far preferable solution to any negotiation with Hamas.