I agree completely.
Expel the Arabs and annex the land.
Is that what he meant?
Forcefully removing entire populations out of an area that is conquered in a war, is a war-crime ... and Hitler did that very thing. They had the Nuremberg War Crimes trials for what Germany did.
Israel does not commit WAR CRIMES and neither do they intend to commit war crimes, despite the fact that Israels enemies FALSELY ACCUSE ISRAEL of war crimes.
Ethnic cleansing
http://en.wikipedia.org/wiki/Ethnic_cleansing
http://www.crimesofwar.org/a-z-guide/ethnic-cleansing/
http://www.encyclopedia.com/topic/war_crimes.aspx
http://www.refworld.org/pdfid/4e09a5622.pdf
The bottom line here is that Israel does not commit war crimes and it will not purpose to commit war crimes.
In my opinion you have that wrong, the Israelis should just wait for the next war and exterminate all of them.
You never let the ENEMY set up house keeping in your own camp.