The Netanyahu government famously traded over one thousand Palestinian prisoners, including some lifers, for a single live IDF soldier. There have also been significant trades just for captured remains. So, the precedent is that Israel will pay a big price to get its people back.

I suppose there is a non-zero chance that Israel decides to forsake the hostages, but I think the political cost would be too high. Also, that would really hurt IDF morale and discipline if there’s suddenly a new policy that they won’t negotiate your release if you get captured.

Something else to consider is that maybe Gaza kind of serves as a perpetual crisis that helps the Israeli hardliners maintain their grip on power. They might still want to keep it around.