All the Palestinian factions signed an agreement to co-operate brokered by China and Russia last year. They agreed that the most important thing is the Palestinian cause.
Hamas are happy to relinquish control and have issued statements as such (it's often forgotten that they never wanted to administer Gaza and only ran in 2006 after boycotting previous elections). Once they are gone it gets rid of Netanyahu's excuses.
The issue may be with the Palestinian authority led by Abbas and his party Fatah, who are viewed as a collaborators with Israel/USA. Their actions failing to protect the West Bank Palestinians.
"Bush thought democracy would fill a vacuum, so he urged the Palestinian Authority to hold parliamentary elections.
One problem, though: Radical parties—notably Hamas and Islamic Jihad, which had boycotted the 2005 presidential election—decided to compete in the 2006 parliamentary contests.
Six weeks before these elections, Dennis Ross was on one of his frequent trips to the Middle East. As the Middle East envoy for Presidents Bill Clinton and George H.W. Bush, Ross had more experience negotiating with Israelis and Palestinians than any American. He was no longer in the U.S. government, but he knew all the relevant players.
Ross was leery about holding elections. He thought that if there were elections, militias such as Hamas should be banned from participating; they should have to choose between joining the system and waging violence against it—they shouldn’t be allowed to have it both ways.
Members of Fatah, fearful that Hamas might win, approached Ross and asked if he could quietly urge the Israelis to block the election. An odd alignment was taking shape. “What’s wrong with this picture?” Ross asked himself. Fatah and Israel were against holding the elections; Hamas and President Bush were in favor.
Ross communicated all this to Robert Zoellick, a former colleague from Bush Sr.’s days who was now deputy secretary of state. Like Ross, Zoellick worried the election could be disastrous. He urged his boss, Bush Jr.’s secretary of state, Condoleezza Rice, to urge Israelis to do some things to improve Fatah’s prospects—for instance, to ease up on border crossings in the Palestinian territories and let Abbas take credit for the gesture."
https://slate.com/news-and-politics/2023/10/was-hamas-elected-to-govern-gaza-george-w-bush-2006-palestinian-election.html