You can exchange two areas without people but you can not exchange two areas with people. Maybe you can dislodge 2 000 people, but not 20 000 people and surely not 1/4 of a million people. According to 2009 governmental statistics, 5% of the Israelis are settlers. No homes, no jobs, no schools ...for at least 3-5 years. In a democracy, the votes of a quarter million citizens count very heavily. No wonder, no government in Israel can afford the 67 borders.
Report: Palestinian, 18, killed in clashes with IDF in West Bank (Haaretz)
from the article: Are peace talks doomed to fail before they start?