Yes, the prisoner swap that Israel sometimes does with terrorists (or other political players) is often disproportionate in that Israel transfers more Palestinian prisoners than the number of Israelis it receives back. Yes, it is also obvious from this that Israel values its citizens more. The reasons why it values its citizens more are:
Military and security requirements
Israel is a small country with just 9+ million people, with around 6-7 million of "trusted" Jewish citizens. It also has fought wars with nearly all its neighbours and fights terrorism from both its own population, and from foreign forces. Thus, like other small countries facing continued internal and external security threats, fixed-term military service is mandatory for Israeli Jews, Druze and Circassians.
While Israel has a competent military with highly advanced equipments, the kind of hybrid, sometimes urban warfare it fights takes a heavy toll on its army and para-military forces. Thus, every personnel matters for the Israeli Defense Forces.
Domestic Politics
Israel is a democracy. Whenever any Israeli citizen is captured by foreign army or terrorists, most Israeli citizens consider it as a failure of the government to protect them. Governments / politicians face a lot of public anger over such incidents. Many Israeli citizens also organize politically and protest, demanding that the government get back abducted Israelis by any means including giving into any demands like ransom and / or prisoner swaps:
Shalit’s captors, affiliated with the Islamic Hamas government, demanded a prisoner swap, but the Israeli government said no – at least in public ... Efforts to free him became a rallying cry for thousands of Israelis who urged the government to secure his release.
Israeli Prime Minister Benjamin Netanyahu ... warned that he didn’t act during this window of opportunity, it could close indefinitely ... It represented a vast change in outlook and rhetoric for the combative prime minister ... Whether it was the prospect of going down in history as the Israeli leader who missed the chance to free Shalit, the calculation of larger geopolitical changes in the region, or a mere reflection of public sentiment, Netanyahu has chosen a path that has taken him away from much of what he has spent decades preaching.
Availability of 100's of thousands of 'inconsequential' Palestinian prisoners
Since 1967, Israel has operated two separate legal systems in the same territory. In the occupied West Bank, Israeli settlers are subject to the civilian and criminal legal system whereas Palestinians live under military law.
As part of Netanyahu's enforcement of apartheid-like policies against Palestinians, arbitrary arrests of Palestinians by the Israeli police and army are quite common. The Amnesty International report includes details of such mass arrests without any regards to human rights:
(P. 11) In Israel, police forces orchestrated a discriminatory campaign against Palestinian citizens involving mass arbitrary arrests of, and unlawful force against, peaceful protesters, while failing to protect Palestinians from organized assaults ...
(P. 18) Since 1967, the Israeli authorities have arrested over 800,000 Palestinian men, women and children in the West Bank, including East Jerusalem, and Gaza Strip, bringing many of them before military courts that systematically fail to meet international standards of fair trial, and where the vast majority of cases end in conviction.
(P. 21) Upon arrest, Palestinians are routinely placed in pretrial detention; by contrast, Jewish protesters are generally granted bail.
(P. 106) Hundreds of thousands of Palestinians in the OPT have been arrested in the context of military rule, including many protesting against Israel’s military laws and policies. ... Israel has also maintained a policy of forcibly transferring Palestinian prisoners from the OPT to prisons inside Israel, a flagrant violation of international humanitarian law ... Some 4,236 Palestinians from the OPT, including 267 from the Gaza Strip, were held in Israeli prisons at the end of May 2020, according to the Israel Prison Service.
(P. 111) Israeli authorities have since 1967 outlawed more than 400 Palestinian organizations, including all major political parties and several prominent civil society organizations ... Over the years, they have arrested scores of Palestinian lawmakers, particularly following Hamas’s electoral victory in 2006 ...
(P. 185) ... between the start of 2012 and November 2019, the Israeli navy has attacked Palestinian fishermen ... has arrested 547 fishermen, 40 of them children ...
(P. 211) Israeli security forces have also carried out violent raids on Palestinian hospitals and medical personnel in the West Bank ... Such raids are usually aimed at arresting injured Palestinian protesters whilst they are seeking medical care ...
(It is common to find Palestinian children in Israeli jails for throwing rocks at some Israeli building - throwing stones now carries a sentence of 10 to 20 years in Israel! Here's a video where a 13 year old Palestinian girl describes her arrest after she was accused of picking up a knife from the street.)
Israel has the dubious distinction of being the only country in the world that automatically and systematically prosecutes children in military courts that lack fundamental fair trial rights and protections. Israel prosecutes between 500 and 700 Palestinian children in military courts each year.
The point is that Israel has plenty of prisoners to exchange, and not all of them are violent or even terrorists but most are politically active Arabs (Israeli and Palestinian) or even innocent bystanders. (Releasing them probably benefits the Israelis too as it frees up prison resources, while political players like Hamas can also get to brag about the "large" number of Palestinians it freed).
In fact, sometimes Israel bluntly refuses to release a high-profile political prisoner or PoW and, instead offers 100's or thousands more of the "minor" prisoners.
The most notable name not on the list is that of jailed Palestinian lawmaker Marwan Barghouti, who is serving five life sentences for murder and other charges related to his role in planning attacks on Israelis during the second Intifada.
Israel also sometimes includes terms of restrictions for some of the released prisoners:
.... Once freed, they will be under various restrictions on a case-by-case basis: Some will not be allowed to leave the country, while others will have restrictions on their movement or be required to report their whereabouts to local police according to Justice Ministry spokesman Moshe Cohen ...
Reference:
- Why Israelis believe one soldier is worth 1,000 Palestinian prisoners
- Israel’s apartheid against Palestinians: Cruel system of domination and crime against humanity
- IDF soldiers
- Military Detention