Their strategy was, I think, as bad as it could possibly be. In fact, it really seemed, and still seems, like no strategy at all -- they lashed out wildly and extremely destructively, without a clear picture of what the post-war Gaza Strip will look like.
Hamas successfully baited Israel into a disproportionate response that killed tens of thousands, if not hundreds of thousands, which played directly into the dynamics of guerrilla warfare where a strong state's extreme actions against a weak opponent undermine its legitimacy.
Walking into such a trap tends to be a real world-historical blunder for any nation.
Yet, rather than adapting, Israel's network doubled down with censorship campaigns, crackdowns on protests, and weaponizing "anti-semitism" accusations to silence critics -- actions that have all backfired. Now international support is collapsing, the EU is pushing sanctions, and the US is slowly distancing itself. Israel's best option right now is to end the war as quickly as possible, and devote all of its efforts to repairing damaged relationships and mitigating the war's effects, before isolation accelerates to the level of sanctions similar to those imposed on South Africa.
I'll also note that it's interesting how all sides seem to have lost. Hamas lost the shooting war, the people of Gaza have lost lives and livelihoods which may take more than a decade to rebuild, and Israel lost the information/media war so damn badly that it may genuinely not recover from this.