Danny Ayalon, former Israel ambassador to the United States believes Barack Obama and Hillary Clinton might endorse a plan under which Israel would retain a larger area of the West Bank in exchange for giving up land i the Gaililee which contains a large Muslim population. He claimed to have discussed the idea with high officials of the Bush administration and believes they were supportive of the idea. Ayalon also expressed surprise that Palestinians do not want any Israeli settlers on the West Bank and termed such feelings as reflective of a refusal to compromise. Prime Minister Ehud Olmert recently proposed returning virtually all of the West Bank to Palestinians.
The bottom line is that Israeli settlers seeking inexpensive homes ventured into the West Bank and took land that did not belong to Israel. There is nothing to “exchange”because Israel can not exchange what it does not possess.