Yes they shoot back but to what end ? None of their rockets actually do work as the Iron dome is efficient enough so they are bound to fail.
Only diplomacy can solve the current situation. Abbas is crooked and his current in Fatah doesnt hold much weight any more but Hamas can't be the solution. They launch rockets for almost 0 casualty (and if they are, it's usually civilians) and in return Israel ups its body count. Armed conflict is doomed to fail.
As usual, the US holds the key above all as Arab monarchies being more Israel friendly lately, there is no other solution.
What is needed ultimately is a less conservative party in power in Israel so the ultra orthodox loonies matter less and Israel can stop the settlement madness. And that will never happen as long as there are Hamas rockets. Hamas might fire them in reaction to Israel fukkery but that will always be a justification to never pursue peace by Israel. Let's be real.
I'm still left to wonder what would have happened if Sharon hadnt been victim of aneurysms. Him of all people was rolling back on settlements in both Gaza and the West bank and was in agreement that Palestinians should have their territories.
If you take a much bigger picture perspective, civilian deaths on the Israeli side have never been lower than the past decade, yet their politics has been on an endless march to the right. Aside from very small left wing parties, which have limited support, there is a tight cross-party consensus on settlement expansion and military strategy.
Diplomacy only works, when there is a cost extracted from both sides that forces them to the table. It may not be possible to extract a serious military cost from Israel, but reality is no chance that relative peace will lead to concessions. They have zero incentive to do so, they have the military edge and powerful political and military supportive.
The rockets may not be the best way to extract the cost to force concessions, but neither will a more "moderate" Palestinian faction. Fatah for all intents and purposes has given up their military struggle, has cooperated openly with Israel to contain activism and rebellion in the West Bank and what has it got them? Ditto for current source of latest flare up. There is no military presence in East Jerusalem and yet the slow march to a complete takeover of the city continues.
Also note all the major diplomatic concessions of territory and/or position in this conflict preceded periods of serious rebellion/military conflict:
-Camp David Accords followed Yom Kippur War
-Oslo Accords followed the Second Intifada
-Withdrawal from Southern Lebanon followed decades of fighting
-Serious diplomatic activity following Second Intifada
Also its early, but so far, there is a distinction in current iteration of conflict. Its first time that major cities across Israel have felt conflict in a long time. The Iron Dome is not a 100 percent effective and still required closure of Tel Aviv's airport, shelter in place etc. Usually this is only experienced in small towns very close to Gaza border. Also first time in decades that there is serious turbulence/rioting from Palestinians living in Israel.