Policies and direct funding
They've openly bragged about funding Hamas in order to keep the Palestinian population divided and prevent any kind of formal government from forming.
Hamas and Likud/Netanyahu need each other to stay in power. Without them, the people in the region may actually move towards peace.
That's the thing
Hamas is awful for putting military installations near civilian infrastructure, and the Israeli military is awful for bombing indiscriminately despite their advanced military tech and resources.
We don't need to pick one or the other