Aren't you the one that argues that Israel is a democratic state with equal rights for all races within one country?
Since it works with the Palestinians there (though you won't call them that, they have to be 'arabs'), why can't it work throughout all of Israel and the occupied territories?
I do think the Palestinians should set up a democracy that respects the rights of all.
If they do that, and make it work, the argument that they could merge with Israel would be both less ridiculous and also less relevant. A free and democratic Palestine likely would not be at war.
However the actual Palestinian regime is instead racist, violent, terrorist, and dictatorial. Their differences from Israel are not only religious, but also differences over the value is democracy, freedom, the rule of law, and human rights.
Until the Palestinians adopt Western democratic principles and spend a generation or two making that part of their culture the idea of letting murderous militias carry out massacres all over Israel while dismantling democracy is a non starter.