“That is the road to national suicide and perpetual war. We would have an Arab majority within our borders in no time. We would hold Arab population centers with no hope of ever being free of conflict. What a disaster that would be.”
I don't agree. I think it is, at best, a wildcard.
Even if there is no demographic timebomb it is foolish to try and control large hostile Arab population centers. Doing so is costing us far too many good Israeli lives in pointless conflict. I say pointless because holding places like Gaza with no role in Jewish history, no religious significance, and only a tiny Jewish population vis a vis a huge Arab population, does not serve our security needs or enhance Israel's ability to defend itself IMHO.