The situation in Gaza
If I understand Moon of Alabama correctly, Hammas is in a much stronger position than I imagined.
Gaza: Ceasefire Conditions And Interests
Netanyahoo, as well his allies in Washington and London, fears a ground war in Gaza. His troops would likely get bogged down in urban guerrilla fighting and would take losses from the new arms Hamas acquired from Libya and elsewhere. Public opinion in Israel would turn against Netanyahoo should any invasion of Gaza end up with high casualty rates on the Israeli side.
But if Israel continues the bombing the pressure from the outside to end the war will increase. There are this time many more journalists in Gaza than there were in 2008. Detailed news and pictures of each and every civilian killed is getting out and with each of them Israel's position in the court of world opinion will sink further.
The bombing campaign has a time limit and a ground war is too dangerous. Those are the weaknesses of Netanyahoo's position.
Hamas knows those weaknesses. As longer it holds off a ceasefire while continuing to fire some rockets into Israel the better its negotiation position will become. It will probably try to goad Netanyahoo into a ground war. One rocket hit with a high Israeli causality rate might be sufficient to achieve that. After such a hit public pressure, especially from the right, to go "all in" would increase. At some point Netanyahoo might have no other way to end the stalemate by committing more forces. Hamas is likely well prepared for that moment.
As long as Hamas keeps its fighting spirit and does not give in to appeasement pressure from Qatar and other U.S. clients it has a good chance of in the end coming away stronger while seeing Netanyahoo weakened.
Of course this strategy is based on the ability to take horrific civilian casualties. I am not so sympathetic with Hammas war lords. But I have no use for Netanyahoo either.