If Israel withdrew security the settlers would be forced to negotiate. A few years ago there was a very right wing Jewish sect who set up an illegal outpost in the northern West Bank. The Israeli government told them to leave or be evicted. They negotiated with the local village and became part of the local community.

It's better to live in peace and mutual advantage to both sides than live under the constant fear of violence. Don't fall into the trap of pre-judging something that has never been tried. The first step could involve certain settlements being offered the chance by the local Palestinian community. It would be mutually beneficial to both sides, and bring much needed employment to locals. It would also lead to certain areas freed from the boycott.