From Israel’s POV, the answer is simple. Stop giving money and weapons to Hamas. The Palestinian Authority has UN not-membership and widespread international recognition; without Israeli interference they will displace Hamas from Gaza. This will also keep Israelis relatively safe, since unlike Hamas the PA are okay with a compromise.

And when has appeasement ever worked?

Since WW2. There have been multiple occassions since then when country A was being an arse and country B had a moral and legal right to retaliate, but didn’t. And thanks to their restraint, WW3 hasn’t happened yet.