The problem is Isreal have already allowed the murderers to escape free many times. Isreal has a history of having to allow criminals and terrorist to go free to get back Isreali's who have been captured by Hamas and other terrorists groups like Hezbolah. Its usually 1 or 2 Isreali prisoners some dead exchanged for 10 to 100 times Palestinian or other Muslim prisoners.
So they are more or less releasing the same terrorists who have tried to kill them only to have them attack Isreal again and again. I think they have more than compromised on this and perhaps too much and nothing has changed.
So in your scenario it would be like you allow the murder to live by switching the carriage to the clear side only to have the same murderer come back and kill your child or take your wife hostage. You can only put up with that for so long and then you realize that if you don't stop them they will never cease coming to murder you and your family. Especially when they are your neighbours in countries on your door step.
Here is only a small portion of the exchanges.
IDF soldier Avraham Amram was captured in a clash on April 5, 1978, with Palestinian
PFLP-GC forces. He was exchanged March 14, 1979, for 76 convicted Palestinian prisoners
.
In 1983 6 Isreali soldiers were exchanged for 4,765 Palestinian and Lebonese prisoners.
In 1985 3 Isreali solders were exchanged in the
Jibril Agreement for 1,150 Palestinians prisoners of which 380 were sentenced to life.
In 2004 over 400 Palestinian and 30 Lebonese prisoners were exchanged for the bodies of 3 IDF soldiers.
In 2011 Gilad Shalit was released in exchange for over 1,000 Palestinian prisoners in Israel.