If they annex Palestine, then all of those Palestinians become citizens of Israe
I think that argument is what has kept Palestine a separate entity.
The Likud Party has a always had the Biblical lands as the homeland platform. The West Bank is a part of that. So the problem has always been, how can Israel steal the land with the world looking? Once the Palestinian capital has been removed from discussion, there is no point in continuation of peace process. Now without a capital Israel can continue settlements in occupied territory until the Palestinians have been effectively politically neutered in small enclaves. Once this has been accomplished, Israel can annex, gerrymander the land and thus prevent Palestinian power.
It is the plan I would use, and I am sure the Likud has thought of it.
I am trying to find tickets for the End of Times Show .... coming to the ME sooner than God would like
