I think
if the West takes the stand that Hamas will have to abstain from violence and recognise Israel before further aid projects are initiated, the party will split up in an dogmatic and a pragmatic wing. A majority party within the Palestinian Authority is an unlikely phenomenon anyway.
A little bit of Realpolitik and tough bargaining from the West is needed:
No honey for the West, no money for Hamas.
No peace with Israel, no Palestinian State.
And let's not forget this is the Middle East. It's the worlds biggest marketplace.
They sell fruit, they sell souvenirs, they sell drugs, they sell weapons, they sell women, eventually they'll sell principles...
In the meantime everybody talks with everybody behind everybody's back.