Internally, Netanyahu can't afford to reject any semi reasonable offer. He also wants to be able to say he did anything positive.
He'll hopefully be crucified no matter what, but in his eyes nothing is his fault and he's working hard at getting points for any achievement and blaming everything and anyone in the past millenia.
They released two US citizens (they might actually live in the US, not just hold a passport). They treat the hostages with US citizenship differently. It has nothing to do with Israel and probably everything to do with not wanting the US to get involved
If it depends on him resigning it won't happen. He is in a survivalist state. He doesn't care about the outcome of the war as long as he remains in power. He doesn't care what happens. The only thing he is working on in a time of war is his image and blaming figures from decades ago for this situation.
Internally, Netanyahu can't afford to reject any semi reasonable offer. He also wants to be able to say he did anything positive. He'll hopefully be crucified no matter what, but in his eyes nothing is his fault and he's working hard at getting points for any achievement and blaming everything and anyone in the past millenia.