It seems to me at the beginning this was a non-violent response to terrorism, and a clever one at that. It sent the message to the Palestinians to hurry to the peace table before you end up with nothing, without using force. After all as this article repeatedly states these groups are buying the land not stealing it. The problem is/was that the strategy didn't work! The Palestinians still haven't come to the table, and the last thing...in my opinion...that Israel wants is a bi-national state. It would be demographic suicide for Israel since the Arab birth rate is much higher than the Jewish birth rate. Since these settler's are a minority in Israel...I believe only 5%-7% of the total population...these construction plans need to be modified at the very least and temporarily halted.
PM postpones Israel-Germany summit marking 50 years of diplomatic ties (Haaretz)
from the article: Jerusalem's best-laid plans