Israeli Arabs can vote. They even have a party and representatives in the Knesset (parliament). Gaza and the West Bank are not Israeli territories, so the people living there cannot vote in Israeli elections. Thus making it clear that the problem are the settlements in the West Bank, not the right for the Israeli Arabs to vote.
Clashes between IDF and protesters in Bethlehem and East Jerusalem (Reuters)
from the article: Abbas: Only solution is to declare Palestinian state