If Gaza is a "prison camp" then it is because the Palestinians have made it so, and certainly not the Israelis.
When there were peace negotiations going on between Israel and the Palestinians (in 1993 and in 2000) the Gaza borders were open, Palestinians traveled and worked in Israel, Israelis traveled to the Palestinian territories, there were joint Israeli-Palestinian industrial and commercial projects, in short.... things looked good. There were even plans to construct an overpass connecting the Gaza Strip to the West Bank.
When the Palestinians launched their waves of intafada terror against the Israeli civilian population they brought upon themselves the inevitable closing of the Gaza and West Bank borders. How could they have expected anything else?
You can't cross the Gaza border into Israel and blow up restaurants, discotheques, schools, and bus stops, and expect Israel to let you continue to walk across the border whenever you want.
The Palestinians elected Hamas to govern them. Hamas's written plan is to destroy Israel. As long as that is so, the Palestinians will continue creating their own "prison camps". Hopefully, at some point, this will end and the Palestinians will opt for peace rather than terror and violence.