You say the 500,000 Israelis beyond Israel's borders aren't going anywhere. But why should they? The big majority of them are living densely close to the border, and they commute into Israel. Regardless where the border is drawn they can keep doing that. If it gets governed by Palestine and they don't provide good services or the taxes go too high, those people will pick up and move and Palestine will lose that income stream. Palestine will need them but might not manage to keep them. The fanatic Israelis who sit on hilltops with their automatic weapons and shoot at farmers -- those will have to go in any workable peace. But there are only a few of them.
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Diplomat David Govrin appointed Israel's new ambassador to Cairo pending cabinet approval (Haaretz)
from the article: Netanyahu endangering Israel's security