I think your knowledge of this is superficial and you're actually the one in the parallel reality. Like, just one example: Dozens of countries didn't suspend funding to UNRWA over 12 workers, but 12 workers became the face of it. It's the single largest employer in Gaza. It's like Wal-Mart (or is it Amazon now, in America).
You really think only 12 of them are in Hamas? The actual report from Israeli intelligence suggested 12 people helped with October 7. It found that there were thousands, up to half of all UNRWA employees, with direct supportive ties to members of the local government (Hamas, very popular in Gaza), and likely hundreds to thousands of actual card-carrying members, in addition to the 12 known employees who used UNRWA resources to execute October 7.
UNRWA has long been accused of enabling Hamas and acting as an impediment to peace.
Israel can and should allow more aid. And it seems like its failure to do so is going to cost its leadership their jobs in the next election, not Hamas though, because their leadership is holed up in Rafah surrounded by hundreds of thousands of human shields and the first thing they did after being elected to power was cancel all future elections.