UN Resolution 242 says that Israel will have administration rights over the land until 1) all Arab belligerncy against Israel has ceased... 2) then the Arabs and Israel will sit down and discuss borders and a Palestinian state.
Israel has returned 91% of the territory to Egypt in 1979. They offered Egypt Gaza but Sadat said "no thank you."
As for Arab belligerency... do you believe it has stopped?
Even Oslo, Oslo II, Hebron Accords, Wye River Accords, Camp David Accords could not stop it.
Do not even suggest that Israel is keeping the Palestinians locked up in a virtual concentration camp. Put the blame where it belongs. On Arafat and his gang of thugs...who are working for the destruction of Israel.
Israel doesn't want to be a permanent overseer. But, they do not want a terrorist state on their border.
UN Resolution 242 was clear... first 1 then 2. One has never happened. Therefore, Israel keeps the only bargaining chip she has to get the Arabs to cease their plans for genocide. The land.