I don't get it

I just read on arutzsheva.com that Israel is considering a ceasefire with Hamas. and here are the terms.
Hamas doesn't attack Israel for 1 year and Israel has to pull out.
At the same time they have sworn to avenge the death of one of their leaders, and they demand 1000 terrorists returned from jail.

I don't know a lot, maybe someone can explain it to me better, but why teh hell would Israel accept this? Basically, Hamas has sworn that they will avenge a guys death, and probably in 365 days they will once again attack Israel, and Israel will be able to reattack GAZA and have the whoel thing happen again. Why not just finish the job now when Hamas is on the run. Don;t give them time to replenish their troops and get new weapons...