More details here.
https://www.politico.eu/article/benjamin-netanyahu-reject-hamas-delusional-cease-fire-demand/
Netanyahu accuses Hamas of being delusional but states that unless Hamas is destroyed “the evil axis of Iran and its affiliates will continue unhindered its campaign of killing and aggression,”. Hamas cannot be destroyed and even if it was does he think Iran will make peace with Israel?
I would say he's the one being delusional but he's just making pathetic excuses for not engaging in the peace process. He wants Gaza emptied and isn't the least bit interested in the hostages.
Israel are not doing anything to minimise civilian casualties but Hamas are expected to release the hostages anyway, they will not release the hostages without concessions from Israel because, rightly or wrongly, they are the only leverage they have. Pushing people to the point they have nothing to lose is a stupid thing to do.
I do not believe Israel would stop the genocide even if Hamas released the hostages.