I find myself asking the same question

The Volokh Conspiracy

"No matter what happens in the near future between the Palestinians and Israel, I doubt Israel will ever allow the reasonably free movement between Gaza and Israel that existed through the early 1990s. Giving the Gazans Egyptian citizenship, and making Egypt responsible for security in the area, would benefit Israel, the Gazans, and even Egypt itself, by destroying Hamas's base (Hamas being affiliated with Egypt's anti-government Muslim Brotherhood). It would also benefit the Palestinians in the West Bank, by allowing the more moderate residents there to reach an accommodation with Israel, perhaps in concert with Jordan.

If Israeli leaders had any p.r. sense and/or vision, they would use this opportunity to loudly ask why Egypt, which refused custody of Gaza when Israel returned the Sinai, is so adamant about refusing to do its part to relieve Palestinian suffering."