Israel is a tiny country and is densely populated. Because of the repeated attempts at invasion they had to take territory both to
A) create a buffer zone to keep the fighting away from their centres of gravity and population centres
B) trade territory for peace. Generally speaking, the arab armies had superior numbers/more equipment and could carry on fighting longer than Israel in a protracted war, so to discourage these long wars, instead of simply absorbing attacks, they performed counter advances, seizing enemy territory in a short time in order to force peace under the threat of losing more land.
I do however disagree with the whole settlers thing, as the original intent was never to take territory as a war prize, but as protection and deterrence to further aggression.
On the other hand, the media circus around the blockade and the constant demonization of Israel, especially in Europe is what saddens me. It shouldn't be hard to figure out that if you fuck with a naval boarding party, whether Israeli, or American, or British, or Chinese, or fucking Canadian, you will get fucked up, especially when reasonable and peaceful alternatives are offered.
I honestly believe most of the people on that ship had good intentions, but there were also a few who knew exactly what was going to go down. They were seeking to bring negative attention to the blockade and won an info ops victory. The editing of the pictures is kinda whack as well, though it doesn't surprise me.
The only funny thing is that the Israelis are supposedly the hugest monsters in the world, when there are REAL genocides happening right now in the world, which are never covered by these indignant and 'shocked' news organizations.