After the 67 war the Joint Chiefs of Staff (ours) recommended a defensive border east of a Jennin-Nablus-bira-Jerusalem-dead sea line. The IDF has made similar proposals which would require annexing about half of the West Bank, depending on where you draw the line, and relocating from 10% to as much as a third of the settlements.
IMO, Israel has had more than enough provocation to implement this unilaterally, and it leaves a state for hostile Palestinians to be relocated to. Kilometer by kilometer will cost far too many lives. A negotiated peace is a pipe dream.