Earlier quoted context omitted.
The territories under question are not occupied, but disputed. Well, the UN security council, the UN general assembly, the US, the EU, and the International Court of Justice, among others, disagree with you there.
The term 'Occupied' is often used loosely, even in Israel itself. The version of 'Occupied' that I'd like to address means: Israel has no claim to any part of the West Bank, is hence illegally present in all parts of it, and should, by international law, withdraw. This version of 'Occupied' is not supported, as far as I know, by either the US, the EU or the UN security council. If you think it is, I'd be interested i…
United Nations Security Council Resolution 446, adopted on March 22, 1979: ... Affirming once more that the Fourth Geneva Convention relative to the Protection of Civilian Persons in Time of War of 12 August 1949 is applicable to the Arab territories occupied by Israel since 1967, including Jerusalem. ... Calls once more upon Israel, as the occupying Power, to abide scrupulously by the 1949 Fourth Geneva Convention, to rescind its previous measures and to desist from taking any action which would result in changing the legal status and geographical nature and materially affecting the demographic composition of the Arab territories occupied since 1967, including Jerusalem, and, in particular, not to transfer parts of its own civilian population into the occupied Arab territories; (http://en.wikipedia.org/wiki/UN_Security_Council_Resolution_...)
I don't see how any other conclusion can be drawn from the use of "occupy" in referring to the 4th Geneva Convention than that Israel is illegally present.
As a practical matter, you may be right that no one today realistically expects Israel to withdraw from the entire West Bank, but 40 years ago people pretty clearly felt differently.