They may think that, but I think you know that her statements in the interview contradict that. She did repeat the word "deport" many times in that interview, but I don't think when she said that they would register "to somehow allow you to work," she meant they would be allowed to work in Chihuahua (that's in Mexico).
And let's say no, if you are here illegally, and if you don't follow the steps that at some point through immigration reform we're going to be able to provide, and that is to somehow allow to you work. If you're not going to do that, then you will be deported. You will be gone.
When this first came out we had some fun with it and a defender actually made that argument. The argument specifically made is that (Palin was really saying that) illegals would sign up for a guest worker program or be deported, and the guest worker program would eventually send them back home. But it is obvious you could only get them to register if it meant they could stay, or get something else they want. It would be meaningless to those that plan on staying here.