Yes, this is very wise as the settlements will hugely increase the Israeli bargaining position if the islamotards every truly negotiated a peace deal in good faith, and building settlements has the potential of unilaterally ending the conflict when combined with a well secured Wall/borders and massive retaliation for any incursion after the Wall is completed.

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Qur'an:8:39 Fight them until all opposition ends and all submit to Allah.
Qur'an:8:67 It is not fitting for any prophet to have prisoners until he has made a great slaughter in the land.
Qur'an 8:12 I will terrorize the unbelievers...Strike off their heads and cut off each of their fingers and toes.
Qur'an 9:5 Fight and kill the disbelievers wherever you find them, take them captive, torture them, and lie in wait and ambush them using every stratagem of war.