The Gaza strip would’ve been left alone if an actual functioning government had been placed there. The siege started only when Hamas came to power, in a democratic election btw. And that election was a 100% Israeli idea - they left the strip alone all on their own because they themselves just had enough of dealing with it, and wanted to leave it alone (with heavy backlash from extremists in Israel, and still did it)

If your idea of “giving up” is using foreign aid to build civilian infrastructure instead of rockets, then that sounds like a pretty good plan to me.