Let me ask you two questions.
If Hamas is using the Palestinian people as shields and is forcefully preventing civilians from moving away from them, that makes the Palestinian people effectively hostages of Hamas. So if the Palestinian hostages happen to be near Hamas terrorists, are they acceptable collateral damage if Israel bombs them?
Eventually, Israel will find out where the Israeli hostages are being kept. Obviously, there will be Hamas terrorists near them. Are the Israeli hostages acceptable collateral damage if Israel bombs them?
If you answered yes to one question, and no to the other, you should ask yourself why you put different value on the lives of innocent human beings. Is it what side of a fence they are born on? What nationality they happen to have? What religion they believe in? The color of their skin?