That seems very good faith and transparent. Bad faith would be saying, 'yeah we are happy with a permanent cease fire', getting all the hostages, and then continuing the assault.

Agree that the logic kind of pushes Hamas into keeping the hostages so not sure what Israel is expecting and most likely Israel has just marked the hostages as dead and will do anything to permanently destroy Hamas and show other potential beligerents that the deterrent strategy is concrete - even though that means a death sentence for most of those hostages still alive.