I can see how you would misunderstand that because i think you're under the misconception that all gazans are Hamas. They are not.
Let me spell it out for you.
Giving money directly to hamas leaders = bad
Allowing international trade so that civilians can build up society and businesses for themselves and their neighbours = good
Even from an israeli point of view this would be better because if the Gazans get multiple options in their life they are much more likely to choose peace and a career than joining a fanatical sect.
When you rob people of their options and their land, and their freedom and their dignity and their kids, and wifes, and their loved ones they tend to fight back. Can't believe israel hasn't figured that out after fucking 80+ years unless the ultimate goal of israel is not peace at all but land.....
You are looking at this through a Western, textbook lens that completely ignores the reality of a totalitarian terror state.
You say, 'Allow international trade so civilians can build businesses.' How exactly do you do that when an armed jihadi group controls the territory? If you import steel for a civilian factory, Hamas takes it at gunpoint to build rockets. If you import concrete for a civilian building, Hamas seizes it to build military tunnels. Hamas literally dug up its own civilian water pipes to turn them into rocket shells and proudly posted videos of it online.
Your timeline is also backwards. When Israel completely withdrew from Gaza in 2005, there was no blockade. The borders were open. The blockade by both Israel and Egypt only started after Hamas violently seized power in 2007 and began launching rockets. The restrictions were a defensive reaction to a terror state, not the cause of it.
Furthermore, if Israel’s ultimate goal was just 'grabbing land,' why did it forcefully evict 9,000 of its own citizens and dismantle every single settlement in Gaza in 2005? You don't pull out of 100% of a territory if your goal is to colonize it. Israel wanted a border. Hamas wanted a launchpad for genocide, and no amount of 'free trade' changes their radical ideology.