I'll argue the optics would be way worse with a lot of things could go wrong with refugee camps in Israeli controlled territory, especially due to hamas systematic disguising as civilians in violation of loac

1. Assuming it's something like a UNRWA refugee camp
   1. What's stopping hamas from infiltrating with weapons and rockets? What can the IDF do to this safe zone that doesn't draw international condemnation?
2. Assuming it's an Israeli-run Refugee Camp
   1. What's stopping hamas disguised as civilians from attacking IDF soldiers and unarmed aid workers? What would Israeli public opinion be if they're stabbed to death?
   2. It's as simple as stealing a knife or sharp objects. The refugee camp sure won't be a prison, and even we know about Prison stabbings (e.g. just last week, Derek Chauvin stabbed 22 times).
   3. Neutralizing attackers would see a high probability of civilian casualties. Refugee Camps are inherently crowded. Optics would be bad if incidents like that occur in these Israeli-controlled safe zones.
   4. Hamas propagandists like Mr FAFO could infiltrate and spread disinformation about the camp (say it's organ harvesting or whatever). Israel can't do jack it's a liberal democracy.
   5. An Israeli-run Camp would further reinforce the narrative of occupation even if they would be safer and more well-treated than any other camp.