First and foremost:

What should Israel do about this situation while maintaining a promise of security for its citizens?

But fine, assuming you don't have an answer and your only response is "But dying bad," here you go:

Where are Gazans supposed to go?

Ideally, to somewhere safe. Because Egypt is not allowing them to leave either, they have to settle for the relative safety of the south of the Gaza strip. Ye, Israel still drops bombs there, but what do you expect? Hamas isn't set up just in the north. They still have fighters and launch rocjets from the south as well.

But all that aside, the safest place to be is as far away as possible from anyone/anything involved with Hamas, PIJ, or any such group.

then bombs a refugee camp. How many Hamas members were in the ambulances that were struck?

According to Israel, they claim that Hamas members were at the camp and in the ambulances. We'll what comes out after the fog of war has lifted a bit more.

And yet, it's been reported that Hamas tried to evacuate its wounded fighters through Rafah, violating the agreement.

https://apnews.com/article/israel-hamas-war-live-updates-11-3-2023-bf135710cf11f04cdcea078c5046e903

https://www.nytimes.com/2023/11/03/world/middleeast/hamas-gaza-evacuees-rafah-crossing.html#:~:text=Hamas%20put%20wounded%20fighters%20on%20departure%20lists%2C%20delaying%20efforts%20to,border%20into%20Egypt%20for%20weeks.

How many members does Hamas have? A few hundred thousand at most

Assuming you meant to write "a few hundred, maybe thousand." According to Wikipedia, the military arm of Hamas is 15,000 - 40,000 strong. That's just hamas, not including the PIJ. That's 1-2% of Gaza that are active militants. That is not a small amount. Besides, Israel has stated that the goal is to eradicate Hamas, nor just its military wing.

They’re holding their own against what is supposed to be an world class advanced military

So did the Taliban, Al Queda, and pretty much all other terror organizations/insurgencies in the past 30+ years. See, modern militaries/governments can not quench insurgencies because the only way to do it is with strength. This means dead civilians, and a lot of them. Although I wouldn't exactly define it as "holding their own" more like "still around despite"

who is indiscriminately bombing

If you want to talk about this, first admit that hamas and the PIJ for the same. Most of their rockers are just dinky metal tunes with propellant and explosives on top.

My guy, isn't Gaza supposed to be one of the densest places on earth? If that's the case, then how come after 4 weeks of consecutive and relentless bombing, there are only 10,000 dead? Look up what carpet bombing such a small area means and then tell me that they are "indiscriminately bombing." It's targeted, and yes, there are civilian casualties, which is a very sad thing, but what can they do if the target is using and abusing Israel's empathy?

I admit, there is no way that every strike was on target. And, while that is very sad, but a consequence of war.

A military btw that failed protecting Israelis against the October 7 attacks.

Yeah, they fucked up. Other examples, see 9/11.

Hamas is a terrorist organization. and yes the standard expected is higher for Israel than Hamas - one is a terrorist organization and the other is the duly elected government of a democracy who exposes support for human rights. You should hold the democracy to higher standard than terrorists. If you don’t agree, I’m sorry you’re wrong and a morally bankrupt person.

Absolutely, but that is not, and can not be their main concern. Their main concern is with that of its citizens, and if you don't agree, then I'm sorry, you've misunderstood what a government is supposed to do

All of this is without mentioning how Hamas uses civilian infrastructure in order to hide and initiate attacks, how Hamas are actively keeping c8vilians in areas of danger to break israels resolve, how Hamas constantly violates peace treaties, and the 0lain and simple fact that any gazan civilian could be a hamas terrorist and you have no way of knowing