126 days ago the IDF would have had more intel about Hamas activities than they do now because until Oct 7th they had the means to surveil every square inch of Gaza and of course it's hard to locate specific addresses when all you've left is piles of rubble. They would have had more opportunities for targeted operations not fewer when they decided levelling Gaza and murdering civilians was a good idea.
Literally every military expert was screaming Stalingrad when the bombing raids started, the IDF have made their job of finding Hamas and the hostages harder.
The tunnel network is still functioning and the IDF have left northern Gaza, the hostages who aren't killed by the IDF will just be moved to somewhere the IDF are no longer operating.
I suspect the people housing the hostages aren't given much of a choice. The IDF are putting the hostages at risk, intentionally so. Dead hostages are not an asset to Hamas so they have an interest in keeping them alive.
Hamas took hostages and continue to hide them because they want leverage. Like it or not they have objectives. Israel can continue to kill civilians and probably the hostages or they can negotiate. Netanyahu won't negotiate because the hostages are as much collateral damage as the Palestinians are. At least now he has an excuse to ethnically cleanse Gaza and as a bonus it keeps him out of jail, for the moment. It's a win win for him whilst everyone else suffers.