Heh - yes, He can be a mite touchy about that sort of thing.
Actually, I am not too unhappy about this myself. The Gaza Palis will flounder for a year or two while their entire economy buys surplus weapons from Egypt and Syria. Then, the Palis will attack Israel, Israel will counter-attack in a vastly more effective fashion, and permanently annex the Gaza Strip. When folks complain, the Israelis will be able to truthfully say that they tried to give the Palis their own state, and the Palis have only themselves to blame for this.
So, in the end, the terms of the covenant are not violated; just a 'temporay adjustment.'
And your suggestion is probably exactly what will happen. But I think the civilian death toll will be much greater after Islamists turn Gaza into an armed forward post.