Sonny, they aren't. ISRAEL can't do something merely because it insists "It's Jewish". ISRAEL is a state, not a people, and so it is constrained by the same int'l laws that bind all states. One of those laws is that you can't colonize an occupied territory.
53-year-old Israeli woman lightly wounded by stone-throwing near Efrat settlement (Haaretz)
from the article: Obama: Israeli settlements hinder chance of deal with Palestinians