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Israel is trying to sell the story that they are victims to Palestinian aggression. The prisoner trade undermines that story because this shows that Israel has a lot of prisoners who are not warfighters. This begs the questions: why is Israel arresting so many civilians, and how are they able to pull that off? The answer is that Israel is the vastly dominant force in this conflict.
Palestinians aren't evacuating because they have no where to go. Egypt has closed its borders to them, and Israel surrounds them otherwise. Israel has also made evacuations very difficult. There have been reports of Israel giving mere hours notice to evacuate and then attacking early anyway.