Akuperma – +1. I would also add that the settlers (who are not Chareidi) probably also don’t really hold by the medina – at least the way it is now.
In any case, the way they feel is that the land belongs to us (to Am Yisrael), and the medina does not have the right to make such laws, so the laws are illigitimate. I guess it’s somewhat similar to the way that most Frum people would feel if the medina made laws that are against the Torah. In fact, they may feel that this falls in the same category since it’s assur to give EY away to the Goyim and it’s a Mitzvah to settle EY. Additionally, they may feel that it’s a pikuach nefesh issue to have Yidden living in these places so that the Arabs don’t overtake us.