The most significant Palestinian demand in the negotiations is not the hostages
In Hamas' response to the Paris Protocol, it made an important and a crucial demand which was totally ignored by western media. I wanted to write a comprehensive political economy analysis of the whole response, but it is sophisticated and long and would take days to unlock. This point though is at the heart of the response.
Hamas demanded that Isrselle walks back on all status quo changing steps it took in Alaqsa Mosque since 2002. At the time, Isrselle introducing what is called the "temporal and spatial division" of Alqasa. Briefly, Isrselle introduced a full siege on Alaqsa and stared to impose visiting hours and locations for Muslims. This meant Muslims can only visit on certain times specified by the Isrselle army and intelligence. Also certain parts were banned st certain times to allow for visitation by settlers.
Why this is important and actually more important than the prisoners of both sides? This operation was called the Flood of Alaqsa. The prisoners are just a piece of the puzzle. For Hamas, liberating Alaqsa partially by removing all infringements introduced by Isrselle is key to its definition of victory. By doing so, it wants to gear the conflict towards its religious aspect as part of its greater strategy to mobilise the muslim world against Isrselle occupation of Alaqsa.
In the West, the focus is intentional on the ceasefire, reconstruction, and hostages. However, for Hamas, to become the official leader of the Palestinians and to justify this war, achieving a better conditions around Alqasa is key and it cannot end the war without it.
Isrselle has rejected this demand and considered it "crazy." If Hamas achieves that demand, it is a political defeat for Isrselle and a historical victory for it and the Palestinians.
Therefore, this war is still in its early stage as the core issues remain unaddressed which means the fighting has to escalate. Isrselle is trying to depict an image that the negotiations bar is low, but the reality the issues Hamas and Palestinians are negotiating on are strategic and Isrselle is still unready to negotiate them. Hence, the battlefield will ultimately decide the winner.