Optimism in Gaza really faded with those four bombings by Palestinian terrorists in February and March. That's when the borders were closed. Hamas has brought a more fundamentalist type of Islam to Gaza. During the intifada, for example, the Palestinian flag was forbidden. This is at Shati refugee camp.
People dress up for the holiday, and go around visiting neighbors.
They see Jerusalem as their capital. That's definitely a dream for them. Both Israelis and Palestinians claim Jerusalem as a holy city. They're talking to their relatives across the border in Egypt. Some will go to university in the West Bank and stay there for the school year, but it depends on the year, the month, the week, the day.