Because they understand that the Israelis are trying to avoid killing civilians?

So, it's as if you can still find it in your heart that they aren't really trying to kill anybody when your house gets demolished by an unexpected military visit, a hospital gets bombed, and a community-congregation area is attacked?

Because Hamas forces them to be human shields? Because they're stupid, enough so to provide hundreds of suicide attackers every year?

Or perhaps, despite the insurgents around them, it is still their home, for a considerable amount of Palestinian Muslims. For example, here in the U.S. in certain cities, even though the crime rate is high, people still choose to live in them. You may say that they just lack the resources to move out, but what about the millionaires and celebrities that still choose to move back to their home cities, no matter how sub-standard they are?
I'm not even going to comment on the sheer number of flaws in the second line in the quote.

No undocumented, untaxed, under-the-radar transactions will be tolerated.

...unless you're a large corporation
...unless you're rich enough to afford legal protections
...unless you happen to be an important politician

No illegal drugs, no paid-for sex, no firearm/cash transactions.

No matter. The criminal underworld will simply just come up with another "currency", or a barter system. Banning bartering would make no sense.

So, what did you say would be different again, other than losing the freedom of tangible cash?