Apart from the fact that there is no carpet bombing (things would look very different if Israel was carpet bombing), what it means is that the Palestinians will have to fend for themselves or turn to Egypt. Israel is done supplying them with electricity and water (which it has done even with the Hamas government, even with the missiles).
No more work permits to work in Israel. No more treatment in Israeli hospitals (you know, like the treatment of the granddaughter of the Hamas leader https://apnews.com/article/bfddfc52de874861aa9c39cd08fcf8b9)
It's very sad but not sure what choice Israel has now. It would be one thing if Hamas was a fringe group. It's not, it has massive support in Gaza and would win elections if held tomorrow. Gazans support armed struggle against Israel and a repeat of the Hamas (except it wasn't just Hamas, Islamic Jihad and even ordinary Gazans all joined in the killing, looting and kidnapping) massacre is very likely.
If they hate Israel so much, fine, it looks like they'll need to turn to Egypt for support and imports/exports and work or even build up their own economy. You can't always be a victim, sometimes you need to own your own ideology and the consequences of your (collective) decisions.
And please dont say 'But they can't, they had a blockade' when clearly they COULD since they had sophisticated weaponry with which to attack Israel and build their terror tunnels depiste an apparent blockade, when the quiet in Gaza before the massacre led to increasing exports through Israeli ports, increasing numbers of work permits to Israel and a hope that this would improve economic conditions in Gaza. What naive fools we were.
What Hamas did 2 weeks ago has changed things for ever. My own personal wish is that people will realise that Israelis and Palestinians are both here to stay and need to work things out (Israelis that occupation is not just and not sustianble and Palestinians that Israel is here to stay and they are not going back to the grandparents' villages from 1947) but I suspect that Israel will go further right and the left/peace camp further weakened and Palestinians will contiue to court Iran and Russia and become more religiously extreme. Israel is not going to turn back on the electricity for them.