Hamas knows that if Israel proceeds with a ground invasion then it is the end of their power and existence in Gaza. Earlier Gaza claimed they would release the hostages in exchange for 6000 Palestinian terrorists (mainly Hamas) held in Israeli prisons. All this is -- is the latest offer from Hamas. Probably an offer not made in good faith but simply for publicity reasons. It is not an offer that Israel will accept. If you kill 1000+ Israeli citizens then Israel will hunt the terrorists down to the ends of the earth to eliminate them. It is unlikely they will put the brakes on invading Gaza on the ground to eliminate Hamas, their tunnels, their weapons and command & control structure. Israel may consider a limited exchange involving foreign hostages and child hostages in order to allow aid, electricity, food, and fuel into Gaza IMO. Time will tell. Biden showing up in Israel and meeting with other leaders in the region may have an impact on the outcome. I am going to assume that Israel will not go in on the ground until Biden leaves the region.
The Hamas commanders are worried about their own lives. That is their only interest- if any- in trying to end the war. They just want a little more time to get to their condo in Quatar before Israel moves in. Hamas admits Israel killed a top commander Ayman Nofal is reportedly the second top Hamas commander killed in Israeli strikes since the militant group launched an attack on Israel. https://www.politico.eu/article/ayman-nofal-abu-ahmad-commander-dead-israel-hamas-war/