You posted: "if the palestinians unilaterally declare a state, in territory which is disputed, then israel has every right to annex those territories which comprise the large blocs of israeli jewish settlements hugging her border." These territories are NOT disputed, these are leghally Palestinian territories. Even we Israelis regard them as "Ha'Shtaheem Ha'Kvoosheem", hebrew for occupied territories. So there is no dispute whatsoever. The Palestinians have every right to declare a state on these territories and a few more territories as well.
Ya'alon okays administrative detention of Jewish extremist suspected in church arson (Haaretz)
from the article: Palestinians under world pressure not to declare state unilaterally