Apparently Israeli MK Yitzhak Levy (of the National Religious Party and National Union, no less) is supporting the freeing of his daughters' killers in exchange for Gilad Shalit, on the condition that they don't return to Israel or the territories.   I actually remember the bombing, which occurred when I was in the army. From 'Free my daughter's killers for Schalit' :
 

In an interview with Army Radio, Levy said that "there is only one way in which a prisoner release would be reasonable, and that is [by] sending them outside of the state of Israel and [the PA territories] and keeping them in another country."

He added that he was also prepared to release other prisoners with blood on their hands as part of a prisoner exchange, stressing that "Gilad's return home is more important than one prisoner or another sitting in jail."

Levy is the last person on Earth I would expect to propose this. As Levy should know, there is absolutely no way to insure than a terrorist will stay out of the territories even if they dump him in some foreign country.  There is certainly some logic in releasing a prisoner to free Gilad Shalit, but not much.  The purpose of imprisoning terrorists is to prevent them from operating in the future and to create a disincentive for terrorism. This cannot happen if terrorists who kill people are released at the rate of 250 for one Israeli soldier.  As I have written elsewhere, Israel may need to reevaluate its policy of releasing massive amounts of terrorists for one soldier - it might not be worth it long term.  In addition to legitimizing the kidnap of IDF soldiers, it will inevitably result in more attacks against Israel. 
 
Israel already attempted to free the soldiers kidnapped on the northern border by attacking Lebanon - with horrific results.  This is another example of Israel only thinking tactically, not strategically.
 
I suppose this is an attempt, somehow, by Yitzhak Levy to make his daughter death not in vain.