@DY–your point #2 is a fair point. I suppose I could argue that if you hold per Rambam that its a mitzvah to settle and conquer, that probably someone thinks that mehadrin is the settlements, which are still perhaps not 100% conquered. That said, my larger point was simply that I suspect that if you asked the question of “do you think the medinah is hashem’s will or in violation of hashem’s will” you would have people line up on similar sides, though I grant you, there is room for the middle ground position you point out.
@simcha– Fair enough.