The underlying dispute is between Syria and Lebanon, Israel makes no claim to Sheeba farms. Israel's position has been that as long as Syria maintains a claim, the issue can only be resolved in the context of negotiations with Syria. IMO the same standard should apply to Lebanon. If, as they have, Syria cedes Sheeba farms to Lebanon, let Lebanon negotiate their return. My guess a peace treaty and recognition of Israel's right to exist would have done the trick, but that's something Lebanon isn't willing to do.
But Hezbollah is trying to get Lebanon on board. If Israel hands of this land, the thought is that the Lebanese will be less angry at Israel.