There was not a single Israeli settlement in the West Bank or Gaza 1948 to 1967. Israel was a constant target from both sides, so it was never about settlements. After the 1967 war, Israel to the West Bank from Jordan occupation and Gaza from the Egyptian occupation, the consequence of using that land as to attack Israel.
2000 Camp David Summit – Barak offered to withdraw from 97 percent of the West Bank and 100 percent of the Gaza Strip. In addition, he agreed to dismantle 63 isolated settlements. In exchange for the 3 percent annexation of the West Bank, Israel would increase the size of the Gaza territory by roughly a third. Barak also made previously unthinkable concessions on Jerusalem, agreeing that Arab neighborhoods of East Jerusalem would become the capital of the new state. The Palestinians would maintain control over their holy places and have “religious sovereignty” over the Temple Mount. The proposal also guaranteed Palestinian refugees the right of return to the Palestinian state and reparations from a $30 billion international fund that would be collected to compensate them. —Arafat turned it down without a counter offer. He wanted the right of return for 4 to 5 million Palestinian so-called Arab refugees into Israel proper, which is not mathematically feasible and Arafat knew it. Camp David was the best offer Arafat was ever going to get. Obviously a very bad choice to keep the status quo and begin more attacks on Israel. Very bad choice!