actually what they want is to get the land that the Israelis appropriated from Palestinians or at least discuss this, which the Israelis have refused.
The fact that reparations have been paid for the Holocaust might suggest reparations would be an 'angle' to provide a settlement for those Palestinians who can prove that they were 'wronged' and perhaps reach some kind of 'settlement' but security of Israel is always the primary concern and Palestinian 'rights' are dismissed. Not many of the Hezbollah dudes on CNN or wherever have really focused on this point very well so it might be crazy to suggest this angle but, in the historical accounts of the conflict I've read, this is the bottom line issue more than anything else.
You cannot be serious. Israel has already ceded west bank and Gaza area land including Gush Katif. There are plenty of Israeli arabs in Israel who work all over the place at inns, food stores, taxi drivers and in many other occupations. They are protected by the same rights that the Jews are protected with. Obviously, you have either never went to Israel or you were only there for a short amount of time.