Generally, one does not bomb children's hospitals to improve life expectancy and standard of living.
Generally, terrorists are very afraid of cameras and precision weapons, so armed terrorists don't hide anywhere with lots of eyes and cameras.
(Hamas may or may not have tunneled deep underneath said hospitals; plausible but unproven).
Bombing said childrens' hospitals with anything not a deep-penetration bunker-buster is certain to create many new terrorists, and kill very few existing ones.
But Netanyahu's values and incentives are very different to ours. I don't see any cost to him of destroying an identifiable population in whole or in part. Well, he'd need a new enemy population, but his current trajectory is radicalising quite a few.