If this is true (and given Olmert's actions recently, I've got few doubts that it is), then this is an unbelievable outrage.
First off, it is national suicide. Everyone has GOT to know that if getting control over a few square miles in Gaza has made the Pallies so crazy for Jerusalem, then actually giving up the Biblical heartland of Israel and parts of Jerusalem will make them positively certifiable. The Arabs will know that Israel is on the run, just as was the case with the Crusaders before they got tossed out. It not only won't make peace more likely, it'll make the opposite occur.
Second, it is incredible that a Jew could give up Jewish land, especially given the actions and words of the Arabs over the past 100+ years. Olmert's actions and words (again, if and only if this report is true) would identify him spiritually with the Erev Rav. For those who don't know, the Erev Rav is the "mixed multitude" brought out of Egypt at the time of the Exodus by Moses, but these were false converts to Judaism with an ulterior motive - to sabotage the Jews and G-d's plans for them. Jewish lore indicates that the Erev Rav have (in a spiritual sense) members present in every generation, but that the final generation will have the souls of all of those who were at Mt. Sinai - Jews and Erev Rav alike. And the Erev Rav, knowing that the Moshiach is about to come, will do everything that they can to stop the Redemption and the Moschiach. Giving away pieces of Israel, placing Israel and its Jewish inhabitants at risk of death and destruction, falls right into this plan.
This is clearly a test for Israel's people - and electing Olmert would amount to a massive failure of that test.
I do suspect that anything is possible (cf any king in the Tanakh who "did evil in the sight of the L-rd"), however...
One who would do such a thing is certainly not a Jew inwardly. Such a corrupt heart would be spiritually of the Erev Rav, ancestry notwithstanding. Which brings up a related issue...
Who exactly are these "Jews" who are performing the expulsions? These soldiers... are they corrupt Jews "just following orders", or are they from (or descended from) the modern mixed multitude who are not Jewish in belief or custom, but made aliyah under the "one Jewish grandparent" definition? My intent is not to malign any of such persons who truly love Israel and are content to live in a Jewish state. I do wonder, though, how many citizens came to Israel strictly for economic benefit, without any sense of love or dedication to the Land. If a better "deal" appears to come along, the Land (to them) would be nothing more than a bargaining chip.
I'll joke around with my children and say, "I wouldn't trade you for [insert something I love, say all the chocolate in the world]". Of course they know that, but to up the stakes a bit, I might say, "I wouldn't trade you for a trillion dollars". The other day I got a laugh from my daughter when I said, "If keeping you meant I could never log onto the Internet or use a computer ever again, you know I'd choose you. No contest, I don't even have to think about it". :-)
It just seems to me that bargaining away the Land of Israel is akin to trading away one's own children. And for that matter, selling off pieces of one's own ancestors... those who toiled to make the land bloom, or those who were only able to dream about returning to their beloved homeland.