The borders haven't moved. I do agree there are illegal settlements but they're within existing boundaries and they're on unoccupied land.
Illegal settlements are, by definition, illegal. Whether the land was unoccupied is irrelevant.
The point is that land isn't being taken despite what the Palestinians keep saying. Once in a while they goof and say the silent part out loud: They consider all of Israel is occupied territory and all Israelis are "settlers".
Note, also, that from an international law standpoint it's not possible for the settlements to be illegal in that there is no competing land claim. To have a land claim the Palestinians would have to declare a state and specify it's borders. They are completely unwilling to do this as it either means admitting to the world their true objective, or the very attempt is a death penalty crime by their own laws. They deliberately painted themselves into a corner that precludes making peace.