According to several sources in Israeli media and confirmed by discussions I have had, the IDF brass and some in the security services have changed their minds about how to handle the hostage issue in a few ways:
1) They are saying getting the hostages out militarily should be the primary focus of the operation.
2) They are encouraging the government to release as many prisoners as it takes to get the hostages back. They say they can handle the repercussions.
3) They believe it is time to start assassinating Hamas leadership abroad.
These changes are occurring for a few reasons:
1) The talks with Hamas are going nowhere.
2) An invasion of Rafah is not close and may not happen.
3) More hostages are dying, and evidence of significant sexual abuse is coming out.
So far, the strategy has not changed, but enough crucial decision-makers are thinking this way to warrant new approaches soon.