This is the approach that Israel has had since withdrawing from Gaza in 2005, aside from occassional forays back in (but no last occupation). Unfortunately destroying Hamas’ buildings has done little to stop them (and, since Hamas operates out of civilian buildings, it has also not minimized casualties). That plus isolation has been Israel’s strategy thus far, but clearly that has not shaken Hamas’ hold on Gaza.
What will need to happen now is that Hamas’ capability to control Gaza needs to be removed, and that will require an occupation.