Exactly. Israel isn't exactly the nicest country but they're a porcupine. You leave them alone, they leave you alone. You keep poking them, you get hammered.

And, yes, the settlers are not a good thing--but the problem exists because the government knows they are not the actual cause of the problem, Israel would gain nothing from curtailing them. And note that the violence is wildly misreported, much of it is defensive in nature (look at how often you see one person get shot who is facing the settlers when supposedly they were fleeing--awfully hard to shoot a fleeing person in the front) and plenty of it is purely fake.