I simply don't believe that was the reason at the beginning. While I agree it has been made through brilliant PR maneuvering to become a core issue now, it is just the latest issue. As you brought up 62% of Israeli's are willing to give up the WB for peace while the Palestinians still have: Hamas as elected Government; maps with Israel deleted...replaced with Palestine...that appear in all Palestinian schoolbooks; both Hamas and Fatah recently stated Israel does NOT have a "right to exist" and an old Palestinian poll, revealed 73% of the Palestinian public felt the Pizza cafe(that killed 21 Jewish kids) bombing was legitimate "resistance". Where is the Palestinian Thomas Jefferson? That is what's needed, the question is, wouldn't he just be killed by other Palestinians? Your dangerous simplification of the issue "settlements" is, I believe, unconsciously suicidal, that is to say you mean no ill will, but effect is the same.
U.S.-led coalition stages 41 airstrikes on ISIS targets in Syria and Iraq - joint command (Reuters)
from the article: Declare Independence. Free Israel. End the Occupation.