This is just legalistic nonsense. Whatever you call them, the Arab population of the former UN mandate known as Palestine have the same right to self-determination as the Jewish population. It is ofter forgotten that this was one of the points of the UN partition plan. Either Israel should annex the area and grant full and equal citizenship (with no distinction between Jews and non-Jews) to its inhabitants or let the Arabs form their own state. You pick.
The Arabs could always form their own state in the current territories, the issue is they want Jerusalem.
Annexing and granting them citizenship is suicide
The “right to self-determination” that the Arabs of that area have been exercising since 1947 is the utter destruction of the Jewish state and having an Islamic state “from the river to the sea”. Are you advocating that too? It seems that you don’t understand what’s going on therethe Arabs rejected the “partition plan” and continue to reject it to this day, desiring all of the land in question.
Or implement a fully Halakhic Torah state. That's my personal preference.