I'm not sure what the psychiatric theory is for strategic behaviour. But that is what we have. Settlements were built in Sinai but when there was a peace agreement, they were abandoned, despite the protests of settlors. Strategic behviour puts appropriate pressure on the Pals and there is a risk that if the Pals do not at some point commit themselves to peace and renounce violence, they will and SHOULD lose their "dream" of creating a silk purse (a peaceful and productive) state our of a sows ear (the terror group they are).
Israeli troops shoot, injure Palestinian crossing Gaza border fence (Haaretz)
from the article: Only psychiatrists can explain Israel's behavior