Some 1.2 million Palestinians are ghettoized in Israel. Reunification of families is prohibited. Although 17 percent of the population, Palestinian penetration into the judicial and legislative branches is about one percent.
All holidays, the calendric observances, etc. are Jewish.

Discussed in one if the Wikileaks papers and mentioned in some newscasts is resettlement of Palestinians in a Palestinian territory (of course unlikely because of the numbers), and discussed by Netanyahu, housing minister and welfare ministers Eitam and Yishai.

Discussion here:
"Ghetto Citizenship: Palestinian Arabs in Israel," Oren Yiftachel. Paper for book by Rouhana and Sabagh, 2009.
www.geog.bgu.ac.il

On 10 Dec 2010, Israel's Foreign Minister spoke at the U. N. General Assembly about the removal of Arab citizens from Israel.
www.alarabiya.net/english

Also mentioned in:
"10,000 Jews, Arabs in Tel Aviv human rights march," David Buimovitch (AFP), Dec. 10, 2010 and report in ACRI's El-Ad-
"srael's foreign minister (Liebermann) speaks at the UN General Assembly about the removal of Arab citizens from Israel and he doesn't lose his position, the chief rabbi of Safed, a state employee, tells people not to rent to Arabs and he doesn't lose his job," he said.
google hosted news article.