The concern I would have (and I'm sure you've heard this before) is Palestinian statehood doesn't solve these issues in-of-themselves if the state itself cannot function to prevent the issues Israel is concerned with (the Hamas or Hamas-analogue led state). I just struggle to bridge that gap.

I have trouble with this premise. Was a "hearts and minds" campaign possible? My impression of the Gazan population, even if they aren't necessarily 100% aligned with Hamas, is that it would ultimately end up in a type of protracted low-level conflict regardless of how the war was fought.