Egypt taking Gaza back would be a major plus for Israel. It would be demilitarized, and there would be some sort of UN force present to prevent any major cheating. The Egyptians will keep the Palestinians in line, as they will see them as a threat to the Egyptian government as well. This will also make the potential of some sort of settlement over the West Bank easier, fewer "Palestinians" (they are now Egyptians) as well as issues over movement between Gaza and West Bank, and the whole naval blockade business. The Egyptians would not tolerate the tunnels, burning kites etc.
Of course the problem is the Egyptians don't want Gaza. They don't want to give citizenship to the folks who live there, nor allow free movement from Gaza to elsewhere in Egypt. They don't want the onus of controlling the more radical elements. The reality for Egypt, and the rest of the Arab countries, is that they much prefer the Palestinians in refugee camps and not as immigrants. It is interesting that it is easier for a Palestinian to immigrate to, and become a citizen of, a western "Christian" country, even the USA pre-Trump than it is to immigrate to and become a citizen of most Arab countries. Palestinians living in other Arab countries, and I mean not in refugee camps, are almost always residents and never citizens even if they have been there for generations.