I expect Israel would gladly hand the Gaza Strip back to Egypt at this point. It doesn't seem that Egypt wants it back.
That is of course very easy to say and a bit short sighted, perhaps even cynical.
I think it is without question that Gaza is a region where a lot of people got jammed into, completely surrounded by another state, even the waterfront is hermetically sealed off. No resources, not nothing ... Let the regular people out of Gaza then, support Arab states for wanting to take in Palestinian refugees etc etc...
Pertinent questions are:
Who created this situation in the first place (The borders of '48 come to mind)?
Save terrorists with different agendas, don't 'regular' Palestinians have a right to be upset about what happened to them? Let alone a right to take up arms in regular war? Other people have gone to war for less...
What about settlements?
I am really not wanting to put blame on a single party here but honestly, how can the international community (US, Europe, Israel, the Arab world) first create the situation that we have now (ie by not respecting the borders of eg '48 and then not expect this horrible cesspool to erupt? Of course people will react, violence will ensue and really, more violence will not stop anything.
Again, you cannot first coop everyone up in a small area of land and then "blame" opposing forces to use people as shields. Can people get out of Gaza if they want to? Regular, innocent people? I think not... Gaza is a ghetto for all intents and purposes.