Well there's that; I imagine in such circumstances both push and pull factors would eventually lead to an exodus of Arabs from Palestine, with those remaining likely conducting some kind of domestic insurgency within Greater Israel, probably like Northern Ireland only ten times worse.
The thing is, a lot of the Israeli right's rhetoric is predicated on the idea that only a strong, assertive, and militarily dominant Israel can guarantee the security and continued existence of it's people. The Europeans tried to exterminate us, so the narrative goes, and as soon as we escaped the Arabs tried to destroy our country and they've never stopped. There's a kernel of truth in that, though it is an extremely simplistic view. The problem is, the mania with security and the Arab threat has left that constituency unable to envisage a route to security except through military strength. Unfortunately, such an approach is almost guaranteed to be ruinous for Israel in the long term.
The IDF is the finest military in the Middle East - possibly all Asia - and it can defeat any army the Arab states combined could put in the field (and has done, on numerous occasions, in the past). But there will come a time - in 50 years or 500 - when Israel finds the balance of power shifted, when it is weak and unable to defend itself. When that time comes, Israel will have to rely on the goodwill of it's neighbors; and it will not be able to do that if this conflict goes on.
This isn't necessarily to assign blame or find a bad guy - the Arabs have a lot to do with why
the Israeli right thinks like this, and why pluralities will back them in Israeli elections - but to try and understand why Netanyahu's assertions that he is the only protector of the Jewish people are ultimately doing more to undermine their security that Hamas's shitty rockets ever could.
edited 21st Mar '14 5:28:12 PM by Achaemenid