A friend and I have been engaged in a dialogue concerning Israel for some time. Recently he stated that “settlements are a disastrous thumb in the eye that is horribly counterproductive and will be disastrously costly in the long run, derived from haredi (ultra-Orthodox) and Irgun mentality.”
My friend implied that settlement activity is derived from “ultra-Orthodox and Irgun mentality.” Irgun was an extremist pre-Israel group that employed aggressive tactics reacting to British bias toward the Arabs while under the United Nations mandate over Palestine. The Irgun group was disbanded with the creation of the State of Israel. You suggest that the aggressive behavior of ultra-Orthodox settlers is equal to the tactics of the Irgun. They do not use the same offensive actions against the government.  
I acknowledge that settlements pose a problem for many countries including the United States. Most view settlements as illegal. The USA has maintained that they are “an obstacle to peace.” Please note that legal scholars recognized that a country acting in self-defense may seize and occupy territory. U.N. resolution 242 gave Israel the right to administer the territories it won in 1967.
As for being a “thumb in the eye,” former Israeli Prime Ministers Ehud Barack and Ehud Olmert offered to vacate many of the settlements and recognized East Jerusalem as the capital of a Palestinian state. These offers were too generous and were rejected. Whose thumb was in whose eye then?
This is an example of an ongoing pattern of rejections by the Palestinians that began in 1948 when the United Nations proposed a two-state solution, one for a Jewish state and the other for Palestinians. A rejection came in the form of war declared by the Palestinians and surrounding Arab countries. The Jews won and declared that they prevailed in its “War of Independence.” The losers referred to their as defeat a “disaster.” (In Arabic this is known as nakba, a term still used.)
During the Israeli War of Independence, the Arab League conquered the Old City of Jerusalem, expelling or killing the inhabitants of the Jewish quarter. Jordan annexed west of the Jordan River that included East Jerusalem and the West Bank. During the period of 1948 and 1967, the Jordanian “occupation” of the territories, 58 synagogues were destroyed, a hotel was built on the Mount of Olives atop a Jewish cemetery and grave stones were used to pave roads and latrines. Jews and Christians were barred from visiting their holy places. During the 1967 Six Day War, Israel literally liberated the Old City of Jerusalem and the West Bank. The holy places of Jerusalem under Israel control are now open to members of all faiths.
Rejections and hostilities toward Israel continued in the form of major conflicts like 1973 Yom Kippur War and the 1982 Lebanon War. It should be recalled that after Israel’s remarkable success in the Six-Day War, Israel’s leadership waited for a call from the defeated Arabs to discuss terms. They were met with the infamous “three nos.” No negotiations, no recognition of Israel and no peace. That position was held for 12 years until Egypt signed a peace treaty with Israel. Egypt was then expelled from the Arab League by its 20 members.
Acts of terrorism continue against Israelis. Thousands of rockets from Gaza have been hurled at southern Israel communities. Rioting persists at the Gaza border. Gazans are urged by Hamas terrorists to engage in “A March of Return,” to break through the border barrier and murder as many Israelis as they can. A new tactic of launching fuel-carrying balloons destroying crops and property has been introduced.
This is all connected to the issue of settlements. I, and many others, maintain that the refusal of Israel’s opponents to accept Israel as a Jewish state is the issue, not the settlements. That explains their refusal to negotiate. Palestinian leaders have stated bluntly that no Jews would be allowed to reside in a Palestinian state. This has already happened with the peace agreement between Egypt and Israel. Israel had to abandon the Sinai Peninsula including the town of Yamit. The Jewish residents of that desert town submitted that they could accept dual citizenship, Egyptian and Israeli, and remain. The Israeli government had to forcibly remove the Israelis from the town. The same situation occurred when Gaza was evacuated. Gazans under terrorist Hamas rule have rained missiles and mortars on southern Israel. So much for “land for peace.”
Israel is accused of having settlements in the West Bank that would deprive Palestinian Arabs land that could become part of a Palestinian state. Recognizing that position, the Israelis brought compromise positions to the table that were rejected as previously noted.
Israel has been repeatably asked to sacrifice land, settlements, defensive barriers and blockades for peace. What has been asked of the Palestinians? Their leaders have misused them as human shields, taught their children hatred and even honored and paid cash rewards to terrorists and their families.
It is reported that number of Israelis in settlements residing in the West Bank is 400,000. Orthodox settlers number less than a third of that population. There is a total of the 800,000 living in settlements across the 1949 armistice lines. It has been observed that many of the settlers move to the territories for economic reasons as it is much less costly to live there than in other places in Israel. That includes ultra-Orthodox families.
So my friend, I continue to contend the issue of peace in Israel is much larger than settlements. I look forward to continuing a dialogue with you.