In the end, the deadline ran out, and the army's special unit assaulted the building. After this a controversial debate erupted in Israel in regards to guns, self defense etc. I for instance had and still have one. No school group went on a hike or trip without armed guards. When the message got around to the PLO groups and a couple infiltration attempts failed, the attacks against schools ceased.
Nobody wants to play the principles-game when kids are involved.
Kidnapping has thus often resulted in the paying of ransom demands. No follow up imitations occurred in France. We in the terrorism research field have argued for decades that it was exactly the media coverage that spurred more and each time more violent and extreme terrorist incidents. That is apparently one price we have to pay living in a worldwide infotainment society. The airplane hijackings in the 70's and 80's are a case in point.