You are confusing groups of people here. By and large --
1) "Settlers" (I hate that term since it is used to marginalize and deligitimize a brave group of people) are not the ultra Orthodox Hasidim, also known as Haredim, who get army deferments because they study in Yeshivas
2) "Settlers" do serve in the army and make up an inordinate percentage of the Officer Corps and Elite Units
3) "Settlers" do work. Note the dismantling of the "settlements" in Gaza is often bemoaned, among other reasons, for the loss of its produtivity, its thriving agricultural industry
4) The non-working group you are talking about Hasidim/Haredim live in very Orthodox communities in the heart of Israel such as in the heart of Jerusalem (Meir Shearim) or in Tel Aviv (Bnei Brak). Their non-service in the army and welfare status is a source of great resentment and controversy in Israel.
It also unfairly tarnishes the image of Orthodox "settlers" who are another group entirely.
And finally, any community/country can have some one who goes off the deep end. Israel had Baruch Goldstein in 1994. I think the generalizations come from the rarity of Jews committing acts such as this at the same time they are held to an impossible standard of perfection expected of no one else.
Your points are well taken, and I agree that a lot of the controversy in this thread resulted from the conflating of Jews who live in the West Bank and Gaza with ("Settlers") with Hareidi Jews who study in kollels.
Thank you for noting the confusion and clearing it up.
For the record, Baruch Golstein was an ER doctor who often had to try and save what was left of his neighbors and friends after the palesites committed their depraved acts. Dr. Goldstein became unhinged and it had its way with him. It's a "man bites dog story", as is this one.
I think it was Eric Hoeffer who said something to the effect that the citizens of the Jewish state were the only people in the world expected to be perfect Christians.