I wish they would and the next day all that decide to live within the borders of "their" state can experience the power and excellence of the IAF before those Palestinian terrorists orgy with their 72 virgins.
You pretty much identify the crux of the problem of a self-declared Palestinian state.
Internal Palestinian politics alone will demand they claim all the territory of Israel as being a part of their state. At which time, a state of war - real war -will come into being between Israel and the nascent Palestinian state, whatever they decide to call themselves.
Having abstracted themselves from underneath the protection and restraint Israel must presently show towards them, the Palestinians will now be subject to the fury Israel would show toward any state that threatened its existance.
It wouldn’t be a long war. I just hope they deal decisively with ALL their Arab and Muslim enemies, not just the Palestinians.