Could this proposal be due to demographic/voting reasons? The high Arab voting population in these areas may threaten general Israeli elections to the distinct disadvantage of Israel. A majority vote nationally could be now be controlled by these Arab dominant regions if there are enough of these votes. Maybe the reasonable approach to controlling their own country is to get rid of the Arab vote that might tip balances having to do with Israels survival itself. Not many Jews in Saudi Arabia. Many Arabs are citizens of Israel and granted religious freedom as well as full voting rights there. Israel may be dealing with the demographic/voting threat in a realistic way. Any thoughts on this from anyone?
They are simply looking for a way to appease the Palis and to bolster Fatah compared to Hamas, now that the two are openly at war over Hamas' taking over Gaza. It is dumb and would not work, but that is all the motive there is to it.
A better approach would be to immediately blockage Gaza and prevent all entry of anything. But they instead sit and take daily rocket attacks, and let the agencies ship in food money etc to support Hamas and their new subjects.