Settlements not the issue
The amount of territory taken up by the built-up area of all 121 settlements in the West Bank, with approximately 290,000 residents, is estimated to be just 1.7% of the territory. Two thirds of the settlers reside in five major blocs, and half of the settlements have 500 or less settlers. Four of the blocks are very close to the 1949 armistice line and many of them are suburbs of Jerusalem and Tel Aviv.
Ninety eight percent of the Palestinian population lives within roughly 40% of the West Bank, in six major cities and 450 villages. Consequently, 60% of the West Bank is empty of any buildup. You can drive for a long while in the West Bank and find no Jewish settlements or Arab cities, or people. Moreover, the settlements are a major source of jobs and income for the Palestinians.
Nice summary.