I'm pretty sure both sides target civilians to be quite honest. They're the easiest targets and it causes fear to grip the other side in order to advance your political goals.
For the questions "what does Israel gain from bombing hospitals?" Easy, it scares the hell out of the Palestinians in the hopes of deterring them from supporting Hamas or leaving Gaza. Both outcomes are wins for Israel. Israel also has a pretty easy cover for this "Hamas made us do it because they were hiding among civilians".
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