Israel’s victory in the Six Day War was a triumph of soldiering and military technology. Israel still retains vast military superiority over its neighbors, and obviously over the Palestinians. There is a large body of opinion in the Israeli military, and former Israeli military, that Israel’s security no longer depends on holding the West Bank.
In sundry ways, the West Bank isn’t Algeria. Still, Eshkol was mistaken, and Aron’s point holds true for Israel and the occupation. The “loss” of the occupied territories won’t be the end of Israel. Holding on to them might be.