...let's make this simple. Israel has far too many settlers living in large settlement blocks too far from the Green Line. For example, under your idea, a place like Ariel will fall under "this is ours and always will be ours".... Then one can look at how the borders would have to be worked out, and unfortuntaely, they don't look viable at all. The issue is not Israeli security. That is the easy part. The issue is Israel is not ready to give up on the idea of expanding its territory deep inside the West Bank.
Suspected assailant in car-ramming attack in West Bank shot (Haaretz)
from the article: Israel needs to launch a preemptive diplomatic strike