IDF is not a terrorist organization, it's the military of a country that has signed the Universal Declaration of Human Rights and the Geneva Convention. These aren't uniformly upheld, but the fault lies largely with Israel's government, not the IDF. Furthermore, Israeli citizens are required to serve, so the moral culpability of an IDF soldier not committing any human rights violations is not the same as a terrorist intentionally joining a group to commit terror.

Also, the OP posited literal magic and decided that the way to use magic was slaughter, not removal or disarmament.

Of course it is terrifying to be in violent opposition to a modern well-equipped military force. You may well end up dead, and through no great fault of your own. But that doesn't make it a terrorist organization.

Any terrorists left from the integration of various hard-line Jewish groups that actually did commit acts of terror in the late 1940s would be well into their nineties--not very scary.

Also, Hamas has never accepted the 1967 borders. It would not be okay. The Nakba wasn't 1967, it was 1948.