The Gaza Strip seems very poorly served by the Palestinian Authority, let alone Israel. But, the area has relatively stable borders and it would likely have a stable government in Hamas. So, what if Gaza just declared independence as the government with sole control over the Gaza Strip?
Would Gaza get recognized by other countries? Could it parlay the recognition into forcing a permanent peace with Israel as becoming a recognized country puts Israeli treatment of it into more known sections of international law?
It’s already a de facto independent state, led by Hamas. However, both of its neighbours dislike the state and have put up sanctions and other limitations.
There’s not enough agriculture, not enough electricity, and as a result, nowhere near enough fresh water, and no natural resources to sell. This is why Israel cutting off resources after the recent brutalities has had such an extreme impact on the people living there; without Israeli resources, Gaza as it exists now will collapse.
In the unlikely even that Israel will recognise its neighbour, there’s very little reason for them to keep the providing cheap power and water they’ve been delivering for years. With the government being listed as a terrorist organisation all over the world, trade options will be very limited. You’d end up with a tiny strip of Afghanistan with even fewer resources.
Palestine as a state needs the West Bank at the very least if it wants to support itself, but the Palestine Authority controlling the West Bank isn’t in control of the Gaza strip. During the last elections (over a decade ago), they didn’t even win; Hamas was the last elected majority government of Palestine before the democratic system was dismantled.
This provides a question of legitimacy as well: other countries will have to choose between recognising the terrorists who won the election (and are in de facto control. Of the territory), or the minority government which abandoned democracy when they lost. There are plenty of well-known undemocratic countries in the world (Russia, China, North Korea) but at least those countries have a clear government. The West Bank/Gaza strip governments have been joining and separating every few years.
As for international law: maybe it’ll apply, if everyone agrees on it being a country. Palestine is already in a Taiwan situation, and Taiwan sure doesn’t get much protection from international law either.
Regardless, a separate Gaza government won’t change much. Hamas would rule the newly recognised country as a theocracy, and it’s very much intent on complete obliteration of Israel and its inhabitants. The first action the government of the new state would take is start a war.