The blockades are there because of the ongoing threat of terror from Hamas. In the period before oct 7th rocket and terror attacks were still ongoing, it was an active security threat.
Did you read the article? improving the economic stability in Gaza as a deterrent for terror was seen as one of the strategies for improving the overall situation.
they found detailed maps of the kibbutzim, made by workers who had come in on permits with in depth knowledge about the people who lived there. The kibbutznikim were liberals, people who were active in building peaceful relations with Gaza. Look up Vivian Silver and the work she was part of- women wage peace. She was murdered along with a number of other peace activists on October 7th. That’s the broken trust I’m referring to.
“Both Greineman and Dann spoke about the kibbutz families who had helped Palestinian workers from Gaza. Dann said he had a friend who had become close with one of the workers whose daughter was ill with a heart defect, and helped them get medication and medical care.
“We were glad that workers from Gaza were coming to Israel with work permits to have jobs to meet Israelis, to see that we’re not all ‘those devils,’” he said, gesturing with air quotes. “We all really believed that things are changing. That Hamas has maybe matured from being this terrorist group to being the grown up; taking responsibility for their people, worrying for their welfare. And that concept really blew up in our face.”
Members of one family who had hired a Palestinian employee were now in Gaza themselves as hostages, Dann said.
“I can’t tell you if one of those workers was a spy,” he said. “We can assume that probably yes because they had intelligence. They came here with maps. They knew exactly where everyone was.””(https://www.timesofisrael.com/1-month-after-oct-7-massacre-the-ruins-of-kibbutz-kfar-aza-testify-to-its-horrors/amp/)
I don’t have a link to hand, or time to look, but I’ve seen pictures of the maps found dropped in the kibbutzim in the aftermath of oct 7th.