I think they and every other Western Palestinian will wait and see to make sure the country doesn't collapse before renouncing their citizenship. I'd be willing to bet about half of the Israeli-Arabs will keep their citizenship even with a stable state next door. I think they'd rather enjoy one of if not the best standard of living in the Middle East for Arabs than throw out their passports.
Hours before Mumbai bomber to hang, court rejects final appeal (Reuters)
from the article: PLO chief: We will recognize Israel in return for 1967 borders