Palestinian suzereignity. They don't want to live under it trust me. The Druze are their own ethnic and religious group, they know what will happen to them if they become weak. Circassians are Muslims (but only since 1860) but totally alien in language, race and culture. They are from the Western Caucasus and were settled by the Ottomans to form a sort of loyal buffer against the marauding Bedouins.
By your own logic East Jerusalem shouldn't be part of a Palestiunian state. Never mind it's an idiocy in practical terms.
The civil infrastructure was not destroyed by Sharon's government that's pure moonshine. They received millions, the PLO pocketed it and let everything go to pot. Requiring the legitimate leaders to stop the violence against Israelis should be the first step. There is no reason or excuse for it. Most of the occupation comes from security considerations. Israel is having it's own financial difficulties you expect us to subsidize them? Isn't collecting their taxes enough?

You know it doesn't matter how Native Americans conduct their businesses but if they take over from the US Gvt they will inherit the structure and things will go on like they do today.