What should happen is Israel walling herself completely around. Free up soldiers to heavily guard the coastline and patrol the waters.
What will the Arabs who depend on work inside of Israeli territory do then? The Palestinians are not evolved enough to shut up, put down their guns, and start building a nation and an economy.
Let's not forget the billions Arafat has stashed away. Once Israel finally isolates herself from the barbarians, they will turn on Arafat...watch and see.
One more thing. Is it actually plausible that Israel can completely wall off her borders?
LOL--should be child's play for these folks...they already made the desert bloom.
One little part of your post--the Arabs may be dependent on the Israelis for work, but the Israelis are going to have to stop hiring the Arabs...