What kind of precedent does it set? How dangerous are these released prisoners still (I've heard most of them spent 20+ years in Israeli prisons)? What about the families of their victims?
Israel was always on the loosing side while dealing with enemies and terrorists.
Unlike Israel, all the Arab neighbors have death penalty for prisoners and obviously terrorists kill their prisoners.
For this reason when exchanging prisoners Israel always had to give more that what they received.
In this specific case the Israeli soldier was a symbol and that's why such a high price was requested and paid.
To some extent they did fight a war over those two soldiers...
This time is exceptional for its size not for the concept: Israel always had to pay a premium when exchanging prisoners.
Personally it feels like a slap in the face of the families of the victims.
On the other end, it also give a message that Israel always protect its citizens.
And worst of all, in the long term sense, was it really smart to give Hamas a victory it can now brag about among the Palestinians while the much more moderate Fatah is denied even miniscule successes?
Yes, Hamas will sell this a great victory ... and to some point of view, it is a victory for them.
They can show to Palestinians that they do get results, even if it's nothing that will make their independence any closer or make the life of average Palestinians any better.
Propaganda victory.