Is it really domestic when the effective governing body in Gaza and some of the West Bank is Hamas? Should we not sanction countries ruled by terrorist organizations?
Israel isn't free from blame - particularly the actions of Ben Gvir and friends or the expansions of settlement activity are reprehensible and completely unnecessary provocations - but nothing they do is even remotely as bad as what comes out of Palestine.
https://www.amnesty.org/en/latest/news/2022/02/israels-apart...
There is no objective measure of terrorism since that designation is a political one. You can look at the objectivity of the criteria but the choosing of the criteria is unavoidably political. The question is not whether or not the definition is objective, but whether or not it is fairly applied. How would you describe a government that pays the families of "martyrs" who blow themselves up in coffee shops and restaurants, not despite but for their actions?
Correct.
The punishment should fit the crime. Being born in a location run by a terrorist organization is not a crime.
This idea of group punishment is a very slippery slope and I believe you've already slide down it. As I pointed out in the previous comment, there are domestic terrorists in the US. And I'll go even further, members of the US current government have argued that other members of that government attempted a coup. Can't get much stronger claims of being ran by a terrorist organization than that.
A good example of sanctions is the recent US ones vs Russia. It's almost entirely targeted towards individuals and property/companies associated with those individuals who promote/support invading Ukraine. (War being the crime, sanctions being the punishment).
w.r.t. PayPal, afaik they're not the only payments organization so I'm fine with them not providing service as it's not like the Palestinian's have no alternative. (As opposed to say the only grocery store in a region refusing to sell food to a homosexual).
The problem is, as soon as you remove the sanctions, Hamas will use that to collect funds to buy more weapons to send off to Israel.
The only way to achieve actual, lasting peace in Israel and Palestine is to get an Arab country as a guarantor that Israel won't be attacked - but Hamas is so deeply connected with Iran whom everyone else in the region intensely dislikes that no one will take on that role.
Actual people are the ones giving money to Hamas. Those people can and should be sanctioned. The people that aren't shouldn't be. It's a simple concept.