I don't believe Israel can handle the blowback from annexing Gaza. And it's even worse domestically because it puts over 2 million hostile people into Israel's democratic system. This is only an option for autocracies.
Also, their main goal is West Bank. And in order to draw attention away from that, they need Gaza and Lebanon. Integration of West Bank into Israel can potentially end the war.
Here's a funny statement:
Israel’s Settler Council Is Preying on Vulnerable Refugees From Ukraine, Offering Help and Homes in West Bank Settlements. Beneath the Smiles, There's a Toxic Message: Flee Occupation, Become Occupiers
www.haaretz.com
Israel’s settler council is preying on vulnerable refugees from Ukraine, offering help and homes in West Bank settlements.
So the Israelis are very slowly increasing the Jewish population in West Bank. Otoh, Gaza is not as important.