The arab citizens of Israel are just that-Israeli citizens and can't be any part of a final solution to the Israeli-Palestinian conflict. You are confusing territorial exchange with population transfer and axchange, which is highly illegal under international law and highly immoral, unless that population, which holds full citizenship(although not equal rights) is willing to move. The odds that any Israeli arabs would be willing to move to areas designated by thugs like Lieberman or anyone else are zero, so the discussion itself is nothing but an excercise in less than subtle racism. Lieberman, who was allowed to immigrate to Israel by claiming a jewish paternal gramdmother, and who had been a street thug in his former country, is suddenly taken seriously, which is in itself totally shameful, as is the fact he is part of the Israeli political scene, which is democratic by name only.
MK Nachman Shai calls on Netanyahu to declare national state of emergency (Haaretz)
from the article: Lieberman - nyet, nyet, nyet