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No that actually never happened. The very day Israel declared its independence its army was already outside the territory proposed for it by the UN's partition plan. Israel itself never declared what its borders were.
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wrong

Here are only some examples of Israel compromising (land and other) for the sake of peace:

1. Hebron Protocol — 1997

2. Wye River Memorandum — 1998

3. Sharm el-Sheikh Memorandum — 1999

4. Gaza Disengagement Plan — 2005

5. Naharayim/Baqura and Tzofar/Ghamr special-regime expiration — 2019

6. Israel-Lebanon Maritime Boundary Agreement — 2022

Those only that were applied, many more offers were rejected by other side.

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In all of these situations, settlements continued to be built.
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Well somebody didn't inform the settlers. Tell me why does Ma'ale Adumim even exist then?
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Effective border control would be much easier to implement than the settlement program. In fact it largely has been working since the second intifada when they reinforced it. The west bank settlements make israel less safe, not more.
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As if Israel, a nuclear power under complete protection of the world's sole superpower, could have any trouble defending its border. Though of course, turning your neighbours into your friends through appeasement and cooperation would remove the need for such heightened defense. The only problem is that it would be the end of their dreams of territorial expansion and Greater Israel.
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