That won't stop the hostilities. Israel has two stated objectives: free the hostages and eliminate Hamas. The Israeli government is very unlikely to agree to a ceasefire in return for the hostages.
It would undermine a lot of Israel’s international support. At the end of the day, the Houthis aren’t in Gaza. Them raising random asks is orthogonal to the security threat they pose. Piracy is piracy.
Even keeping their weapons but saying they'll try to live in peace with Israel would be a huge change. However it's part of Hamas's founding charter to destroy Israel and they aren't prepared to give it up, which then leads the the jolly situation we have now.
