all Palestinians in Gaza.

... as if Netanyahu would ever withdraw them. IDF over kill in Gaza takes the attention off Netanyahu's other dirty secrets.

However, if all the hostages were returned, the pressure from the Israeli public to end the war would become overwhelming. He would have to accede or see his government fall.

The hostages are really of no use to Hamas any more and there would certainly be intense pressure to withdraw. Not everyone in Israel is eager to participate in the IDF in this instance. People will serve, because it's their duty, but I think that many will push for withdrawal.

....and will do whatever to remove the current occupants.

Netanyahu wants to keep this going so he cant be held accountable for his crimes and now has a like-minded person in the white house unless someone in the Israeli government forces Netanyahu out and Trump suffers major losses in the midterms the only way this ends is in a total war on the middle east.

Since putting Hamas out of business in Gaza is Israel's stated goal?

With no empathy for the innocents.

His and his political allies occasional use of "Amalek" imagery pretty well shows they have no intention of giving anyone living in Gaza the benefit of any doubt of guilt. They're all Hamas, likewise, any Arab living in the West Bank is an enemy.
Ultra-orthodoxy and the desire to retain some semblance of political relevancy to maintain power is driving these events - on both sides.

Releasing hostages would be a sign of good faith, but given the intransigence and self-serving actions of those taking the hostages for their own purpose, I doubt it would occur.

Should it happen though, I think most on all sides would just rationalize "can't stop now, the Rubicon's already been crossed" and the mess goes on, the fingers get more pointed, and we mostly see only what best suits out own biases.

Who knows where the hostages are now?

Netanyahu and Hamas appear to be aligned on the destruction of Gaza and the extermination of its residents. The Big Beautiful Trump Golf Resort that arises in place of Gaza City will become a nasty orange stain on the history of the nation of Israel and an albatross around the neck of every Jew on the planet.

So even if a hostage return could help the situation resolve peacefully, neither side of the conflict benefits from this so it's quite unlikely -- both sides will sabotage such efforts while trying to frame the other side in the worst way possible. We'd need to see a third party take decisive action for a hostage return to be viable.

No snark. I believe Israel's goal is genocide of the Palestinian refugee population in Gaza and complete annexation of the West Bank. Regardless of their pretending otherwise, I believe they intend total annihilation of the descendents of the refugees.

I once thought very highly of Israel. No more.

Then MAYBE there's a chance at peace