But yonif, the reason that the Palestenians in Gaza and the West Bank have no political rights is because those lands are not legally "Israel" and it's inhabitants are not Israeli citizens.
It's a Guantanamo situation where the "detainees" have no U.S. legal rights because, legally, they are not on U.S. soil.
If Israel annexes those lands, then that land becomes legally "Israel" and it's inhabitants would legally become entitled to be "Iraeli" citizens.
As Israli citizens, they would have the legal right to travel about Israel as they pleased. Let's forget about them voting Israel out of existence for the moment and imagine a few million suicide bombing fanatics with Israeli citizenship rights.
Simply giving the Palestinians "autonomy" is not an answer. In post-Franco Spain, non-Castilian regions such as Catalonia, Galicia and the Basque region have local "autonomy" which means they run their own affairs without Madrid directly ruling them as it did before. However, a citizan of the autonomous region of Catalonia is pefectly free to vote in national elections or travel anywhere around the country he pleases.
The system you are describing where a people live in a land where a certain state is sovereign but they have no voting rights in that state or freedom to travel about that state is not "local autonomy" as the term is understood in the 21st Century.
It is simply the Old East European Jewish Ghetto system.
In the U.S., even Blacks during Jim Crow days did not have it that bad. Even if a Black was not allow to vote by hook or by crook, a Black still had the freedom to travel to any city in America he pleased without passing a military checkpoint.
In the 21st Century, you simply can't have a system such as that and expect to be able to retain U.S. support let alone support from any other country in the world.
Annexation of the entire west Bank and Gaza legally means Israeli citizenship for Gaza and West Bank Palestinians.
Palestinian citizenship for those fanatics means national suicide for Israel.
Setting up an Old East European Jewish Ghetto system with Palestinians now playing the role of Jews and the Jews playing the role of the Russian Orthodox would devastate Israel's moral standing in the U.S. not to mention the rest of the world.
Moral standing translates into U.S. military aid and that, in turn translates into survival.