Pretty muc, yes. The Prime Minister prefers a peace agreement but I think it is pretty clear he will eventually support unilateral separation.
I would not be so certain that the current route of the fence will be the border. I don't think the Tomb of the Patriarchs in Hebron, for example, will be abandoned. If it comes down to unilateral action I suspect a finger of Jewish land, similar to that where the fence extends to include the Ariel bloc in Samaria, will eventually have to be created in southern Judea. Such an act would be a major provocation to the Arabs and I still think the Prime Minister believes a peace agreement is possible. That is the only reason it hasn't happened yet.
Whats the deal with the Jordan River Valley? is it true that its mostly Jewish Settled-Owned? will that area be annexed by Israel?