He left Jordanian occupied Jerusalem, not Israel. He has never lived in "Israel" only Jordanian Palestine. As such, even if he was born and lived there until 21 he has only rights via Jordan and probably has Jordanian citizenship. He faces the same dilemma and visa rules as any visitor. His main residence and citizenship is the US. If he wanted Palestinian citizenship he would be restricted to those areas under Palestinian sovereignty. There are plenty non Palestinians in the same boat.
Egypt to hold parliamentary election in 2 phases starting Oct 18-19 (Reuters)
from the article: Jerusalem's bookseller to the stars facing deportation