Firstly Israel pulled out of Gaza. They gave that back. Yes they have alot of security along the border, so does Egypt. The blockade is apparently completely legal. Do you really think if all this land is given back there will be suddenly be peace? I don't think it's that easy. If they wanted all this land the Palestinians could've had it 60yrs ago when the partition plan was proposed. They refused it then, so clearly they want more...
Firebombs and stones thrown in Jerusalem's Old City; officer lightly wounded (Haaretz)
from the article: Israel approves unilateral pullout from Lebanon border town