There is an alternative, sure, prepare for a year and then invade Israel. Which they did, after decades of "mowing the lawn" as the israelis call it.
The terror organisation classification of Hamas isn't as much about the political party or its affiliated militia as manufactured consent to relations with Israel and traditions among colonial states. The modern 'West' usually calls its enemies terrorist, like it did during the Mau Mau uprising. This is why so few states agree with this classification.
You don't have to like Hamas but compared to the PA they're not very corrupt, and since they stopped doing suicide bombings they've been quite successful as a resistance movement. Since several years back they've also been quite good at unifying and coordinating the political parties and militias on the Gaza strip in preparation for and during periods of israeli military aggression, including with their main competitor in Palestinian Islamic Jihad, socialists from PFLP/DFLP/Fatah movement, Iran's Mujahideen movement and so on.
Hamas isn't just a political party with a militia, it's also a charity movement. To most people it seems weird to call people terrorists because they take care of their vulnerable neighbours and run soup kitchens and the like.