Egypt is kinda stuck, as are many 'progressive' Muslim countries. The Muslim Brotherhood becomes more popular every year and is quite the extremist entity. The more Egypt uses it's military or spends $$$ to prevent smuggling, the more it empowers the extremists. The less it does, the more well armed Gaza becomes. Moreover, please remember that Egypt wants nothing to do with Gaza, and fears it's extremist elements. When Israel gave Egypt the Sinai, Egypt refused Gaza and said that it would be a dealbreaker.
U.S. to deliver 8 advanced F-16s to Egypt on July 30-31, U.S. embassy in Cairo says (Reuters)