Id use the IDF to create a WIDE buffer zone between Sinai and Gaza....then ANNEX the buffer zone.
Its an interesting thing to note that since Israel is now in full on war mobilization mode with bomb shelters readied and the civilians and reserves prepared.. its a great time to hit Iran.
Israel has a reserve army that cannot be pulled away from their lives too often or for too long at a time. This means Israel must always take care of business quickly when the reserves are called....so the urge is to take out Gaza, Hez in Lebanon, Egypt and Iran while the IDF is mobilized...perhaps lay some hurt on Syria as well if they act up.
And please, this time ANNEX the northern half of the Sinai!
Bargain away the southern half if you must but never let Egypt close to the current border again.
Excellent idea. Hamas is firing rockets with what, up to a 40 mile range right now? Fine, I'd push 50 miles into the Sinai. Everything between the border and the edge of the buffer zone would be under strict military/marshal law.