Israel is doing the right thing here. They should stop pretending Gaza is "independent". They should talk directly to Egypt and ignore the Hamas government.
Yasser Othman, Cairo's ambassador to the Palestinian Authority may wind up being the de facto governor of Gaza. Israel is evidently starting to treat him that way. Its better than pretending Hamas is a real government.
Next step is to start holding Egypt responsible for Ghazans’ actions, and demanding that they stop them, or Israel will be at war with Egypt. If that doesn’t work, then invade Ghaza immediately and finish it fast. If Egypt wants to mix it up after that, Ghaza is out of the way and we’re ready.
It will be next to impossible to get Egypt to take responsibility for or to annex Gaza. Maybe the only way is to turn over the gas field off the coast there, but Israel already pledged it to the PA.
Israel could try to bomb the border separating Gaza from Sinai. But that would be considered a hostile act by Egypt, and could result in more and bigger missiles being smuggled into Gaza, closer to range of Ashkelon and Be’re Sheva or even further.
Not saying there is no solution, but they need to go back to the policy of attacking Hamas. Unfortunately I think they are, at the moment, playing nice with Hamas as part of their effort to punish the PLO/PA for going to the UN and discarding the Olso agreements. I am certain that is one of the reasons they agreed to the Shalit deal - to raise Hamas and humiliate PLO.