The only trouble with the above is having to eat it after it is out of the mouth! That's why so far, we have heard only tentative trial balloons. Most of Israel has swung to the extreme right, no land, keep it all, and grab more.
I don't know if this is mendacity, delusion or projection on your part, but here on planet earth the Israelis are overwhelmingly (>70%) in favor of making a deal that will rid them of the territories so long as they get peace and don't create a terrorist state on their border.
THEY DON'T WANT TO GOVERN THE PALESTINIANS. They have been desperate to find some way of letting the palestinians govern themselves peacefully (there's the rub). The Israelis are sick and tired of shouldering the responsibility and getting nothing but grief and death for it (even though, under their governance, the Palestinians became more healthy, prosperous and better educated than any other general population in the entire Arab world).
Not only will the Israelis not "grab" the territories (excepting a unilaterally drawn buffer zone and bordering settlements if the Palestinians continue refusing to negotiate peacefully) but, I predicate, they will never even reinstate pre-Oslo style full military governance, no matter how bad things become. Actually, this is unfortunate for the Palestinians, who suffer more under their Arab "leaders" than they ever did under Israel.