Why would Hamas agree to such a deal?
They don't care about humanitarian reasons.
They don't care about the woman and children in Israeli custody.
The only reason they would agree, is either to save themselves, or to help them kill more Yidden, or both.
No?
IMO when Hamas attacked they expected initial heavy support from the West Bank, Hezbollah, and Iran possibly turning into Jordan and Egypt as well. When that didn’t work out (and their plan worked better than expected from their own end) and Israel retaliated this strongly they have been retreating since and trying to figure out how to survive.
It’s likely that Israel is very close to reaching the hostages in any case and they are making significant headway in dismantling Hamas leadership and infrastructure. Israelis are making their way through the door under Shifa as we speak which is likely where the hostages are being kept. Once they’re inside, Hamas will be forced to execute them or let them go, both options don’t help them at all and make them look weak and beaten. By letting them go and obtaining releases from Israel they can claim victory on that front while simultaneously buying time to extricate their remaining leaders such as Sinwar and possibly extending the ceasefire and influencing public opinion long enough that Israel mostly backs down.
Without as many hostages (especially women and children) Israel’s mission is less clear to the world, they will have much less support in general (already true) due to the long period of time since October 7, and once there’s an extended pause it’s always difficult to restart at full strength. I’m near certain Israel will reoccupy Gaza, get Egypt to occupy and take military responsibility, or at a minimum have a peacekeeping corps from other countries take responsibility. They have achieved many of their actual missions in this war and dismantling Hamas fully isn’t realistic- for every terrorist killed 2 more are happy to take his place.
Ultimately, nothing will bring back the hundreds of Neshamos they slaughtered. But whatever they could have hoped to achieve, they already mostly have. Just killing more Hamas members isn’t as productive as it sounds. I’m sure they would like a piece of Sinwar though.