Don't take it personally but it sounds you're not really familiar with the details and the history of the conflict.
Gaza is not surrounded on all sides by a wall. They have a long border with Egypt that's been relatively porous until fairly recently when Egypt has begun to construct obstacles, they have the sea (under naval blockade but they're allowed to fish) and even the border with Israel is not 100% walled. You might be confusing Gaza with the wall that was erected between Israel and parts of the West Bank. It's true they are isolated which again is what happens when you piss off your neighbors. There are border crossings and people and goods do cross.
Their living conditions do improve, but slowly, and tend to regress when a conflict flares out. Again, partly by their choice of what to invest in.
Resistance is the cause of their (well Hamas or a portion thereof) conundrum and it's going to get them nowhere. What are they resisting? They're resisting the existence of the state of Israel.
As long as they continue "resisting" in the form of tunneling under the border, investing all their resources in arming themselves to the teeth, building and using an arsenal of rockets, supporting the ISIS contingency in Sinai, indiscriminately attacking civilians, inciting hate and racism, etc. they are going to find themselves in a bad spot. The answer to your question for most people is yes, if you're outgunned and outnumbered by many of orders of magnitude you "give up" or at least try and avoid outright war. They could get an agreement tomorrow if all they cared about was living peacefully in Gaza and improving their condition but they want to get territorial ownership of the entirety of Israel which they claim to be the rightful owners of from before 1948 when Israel was created. That's is closer to (but still not the complete, it's more complicated) root of the conflict.
If they stuck to peaceful forms of protest they'd have some chance of having their voice heard while at the same time improving their conditions vastly. If they seek a peaceful solution they must convince Israelis that peace is possible in some form. It seems they are thinking about taking Israel by force eventually and are willing to wait it out as long as it takes (at least the leaders, not necessarily the man on the street who has no say).