Yes, it's complicated from all perspectives; and if a two state solution emerges then it's even more complicated. In the end, the sttlements are illegal and a barrier to making peace. Costs will be significantly high in removing settlements or protecting..and there will be violence among settlers and Israeli army personnel. What a screwed up mess.
Rocket alarm sirens sound in southern Israel (Haaretz)
from the article: Trust the settlers to lose the West Bank