In all fairness, such a policy isn’t inherently draconian.
(all information from CIA Factbook)
Israel has a population of about 8 million. Of that 17.5% are Muslim. About 1.4m. The population of Gaza is about 1.9m. The population of the West Bank is about 2.8m. So the total Muslim population in all three is about 6.1m.
If Israel paid every man, woman and child, a typical Egyptian wage of $4,000/yr to leave, it would cost about $25 billion. For perhaps double that, they could purchase all their land for a fair value for perhaps another $25 billion.
Israel has a GDP of about $290 billion per year. Israel currently spends 5.58% of its GDP on defense. About $16 billion a year.
If the deportees in question don’t want to be deported, regardless of payment, then it would indeed be draconian by western standards. Not that draconian is bad, however.