Gaza

Shouldn't Israel have simply handed Gaza back to Egypt and washed their hands of the whole place by now?

The southern border is still open and it seems that Hamas are now co-operating with Egypt in re-sealing it (after blowing it up and knocking it over), in exchange for co-control of the crossings. Seems to me like it's the right time for Israel to announce that they're handing back the territory taken after the Six Day War.

The Arab nations keep harping on about the pre-1967 borders so why not restore Gaza to Egypt and do just that? Then all the so-called Palestinians could begin arguing with Cairo about getting their own state.