If Gaza goes back to Egyptian territory then basically all the problem for the Gazans would disappear. First of all they are both Arab peoples of the same background. The Gaza ~ Egypt border will disappear. Second. As Israel and Egypt have a peace agreement then there will be a peace with the Gazans. Third. As there will be peace then the Gazan ~ Israeli border can be opened. This is all pretty simple but it would work.
Law expanding definition of terrorist activity passes first Knesset reading (Haaretz)
from the article: Pro-Gaza activists under siege - imposed by Egypt and Hamas