Their legal status is exactly the same as legal status of Jewish Israelis living in West Bank - they both were born in Israel, both have Israeli citizenship, both moved to live in West Bank at some point. Racists of course, have no problem linking legality of their presence to their ethnicity (Jewish or Arab) and demanding that Jewish Israelis be forcefully removed, while Arab Israelis be not.
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Donald Trump says Republican race all but over if he wins Indiana (Reuters)
from the article: The time to prepare for evacuation of the West Bank is now