Israel needs the Palestinians for the mass cheap labor---that's the ugly truth.
Just like California, Florida and now other states. If Cali, for example, deported all the illegals and the US closed down the US-Mexican border to legal and illegal "immigrants"---for REAL, the Cali economy would virtually collapse.
That is an economic certainty. If you doubt this, you haven't seen much of California.
On Israel and Palestine:
God only knows WHEN this sordid middle-east situation could ever come to a truce.
It is physically impossible for Israel to completely shut down its borders. They already have many Palestinian "refugee camps" and towns in a military chokehold, and still the militants infiltrate Israeli territory to commit their terroristic deeds.
It is the age-old wisdom:
You cannot control people who do not want to be controlled and you cannot force unlawful savage people to obey civilized laws.
BLOOD IS THICKER THAN WATER
It is true that "most" Palestinian workers are peaceful and would rather carry-on making a living in Israel and not "actively" seek trouble, but it is their mass moral support for the Palestinian militant cause that enable the few militant terrorist groups to continue their destruction--which is just a way of life for them by now. The monetary and military support from sympathetic Mid-East regimes enables them materially. Actually, the 'sympathetic Mid-East regimes' are not really at all that sympathetic, per se, but it's more about political interest from their typical ego-maniacal rulers.
What causes the deep resentment among the Palestinian masses is simply an economic reality: Israel has the economic prosperity and they the Palestinians are the working beasts that feed it. They don't like their position of course. Nothing new. That is the story of mankind.
On most recent events, my guess is that Israeli shells will eventually score a direct hit on Arafat The Terrorist(wittingly or unwittingly),
OR Palestinian militants (Hamas, Al-Aqsa Brigades, et al) will kill him themselves for the coward he is to all sides; then the blame will conveniently be placed upon Israel in an effort to draw a military response from Syria, Jordan, Iraq and others. That is their wettest of wet dreams.
I am constantly surprised that Arafat The Terrorist hasn't been whacked by his own people yet. But I think his days are really numbered now that he isn't so good anymore at getting the teary-eyed, bleeding heart U.N./E.U. to pop up and pander once again for the Palestinian Terrorist cause before the world.
Well, there's my too long opinion...