This is an interesting point. It's always been part of the negotiation that Israeli settlers won't be allowed to stay in what becomes Palestine, and yet it seems out of the question to expel Arabs from Israel. This makes sense, of course. Arabs know they're reasonably safe in Israel and have political rights. Everyone knows that Jews who remain in the new Palestine without Israel's explicit protection will be massacred.
But think about what this implies.
Yes, that's true. How then should Israel go about giving away their land to "palestinians" for a 2-state solution knowing full well it would result in mass Jewish murders?