The counterargument--that the best hope of averting war lies not in attempts to appease unappeasable opponents but in preservation of Israeli military strength, which necessitates Israel's retention of all or most of the strategically valuable territories--has nearly a century of unhappy history to bolster it.
Military recruitment is strong, as it tends to be after wars, but the army is still below its nominal full strength, and multiple and long deployments will hit morale and retention.