The "hell on earth" scenario is a very deliberate strategy. How else can you describe the targeting of water systems and cutting off food supply for the entire population?
Having said that, I'm surprised to hear that Israel would be arming criminals - that's going to bite them on the arse in the future. After all, the Taliban started the same way, as did Isis.
Even if the report is wrong, the outcome would almost certainly be the same. You've got a complete breakdown in law and order, along with weapons caches left over from the remnants of Hammas - who were not a ragtag militia, but an armed and well-funded repressive Government at the start of this war.
I think Netanyahu, emboldened by the right-wing and US will do exactly what he says he will do and absorb Gaza into Israel. He's making it impossible for the Palestinians to live there by shepherding them into ever-smaller areas with no independent resources such as farming or fishing. The end game is "voluntary evacuation". I wish Hammas would agree to a peace pause, so food and independent observers are allowed in.