Chrysalis, as I said the "this is my land" bit is insuperable. But the Israelis did give back to Jordan, The Lebanon and Egypt areas which they had ended up with after various wars. including the strategically important Golan Heights. So I think your expectations of a land grab have no great foundation.
If the Palestinians didn't throw rocks and rockets, there would be no retaliation.
It is a shame that we couldn't negotiate Crown title to a 200km by 100km chunk of semi-arid Australia with local tribes, and give THAT to the Israelis. But I guess they couldn't feel the same way about it as they would their "homeland".