Israel is a client state that feels its about to be deserted by its patron, or at least Bibi thinks so (Karzai feels the same way, by the way). Think of the Brits (we’ld see them as Welsh)when Romans said they were leaving, or Franco when he realized he had backed the wrong team in World War II (be grateful, it encouraged to become very friendly to Jewish refugees), etc. And Obama is certainly doing a good job of convincing Israel that their back’s need watching.
The US couldn’t care less about Israelis (even dual citizens) killed in was the US is increasingly disinterested in. If settlers get killed, it isn’t Obama’s concern. You may disagree, and if eligible, there will be a vacancy for Obama’s job in two years, but until then, he’s in charge.
For zionists it is painful to realize that after all these efforts and money and blood, Israel is just a small impotent colony getting abandonned by its masters, and realize it might not be able to survive in the long run. Bibi hopes things will change, and needs to stall. He does have the Iranians making the Arabs nervous, which helps, but he also needs to keep a lid on the Palestinians. Letting out middle aged prisoners seems to be a strategy, and probably does less damage that can’t be repaired that, say, withdrawing from more areas of the West Bank. The prisoners after getting their hero’s welcome, are much more likely to want to get a job and a family than to become suicide bombers – so Bibi isn’t totally irrational.