Terrorist groups often have very fuzzy lines and they all blur the line between themselves and civilians for terrorist reasons. The fuzziness plays into terrorist propaganda as well - shoot one dead and they'll often whisk away the weapons so they appear to media as having been civilians instead.
As for Hamas using civilian infrastructure, they're well known for doing so. In the 2008 conflict between Hamas and Fatah in Gaza, Hamas used Al-Shifa hospital as a base which Fatah attacked and Hamas fired out from within. Hamas never stopped using civilian infrastructure in this way, including to store weapons and to launch rockets from.
Law Of Armed Conflict is clear that civilian hospitals lose protection if used for military attacks on an enemy. Its clear too that areas cannot be granted immunity from attack simply by the presence of protected persons aka civilians.
So, you can see how terrorist groups like Hamas always blur the line between themselves and civilians. This is perfidy and, if captured, Hamas aren't entitled to POW status either.
So, no, it doesn't mean axiomatically that a military power is trying to wipe out a people or territory by targeting civilian infrastructure. Terrorist groups embed themselves amongst civilians as its the only way they can survive a confrontation with Sovereign Military Power.