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It depends on where this "Palestinian State" would be.

However, assuming that the "Palestinian State" refers to a Palestinian State made according to the 1967 borders with acceptable landswaps, the benefits to Israelis and Palestinians become rather simple. The benefit that accrues to Israelis is that Israel can remain a Jewish-majority state and therefore fulfill the mission for which it was created: to be a Jewish and Democratic State. The benefit that accrues to the Palestinians is that they finally have a state in which to determine their own future as opposed to the way that Israel and the other Arab States have treated them.

The disadvantages are rather different. In the case of Israel, Israelis fear that an independent Palestinian State will allow for the development of terrorist Anti-Zionist groups that will target Israeli civilians. Israeli Settlers will most likely be ordered to leave the Palestinian State and those areas will become essentially Judenrein. Finally, Jews will likely lose access to the innumerable Jewish Holy Sites in the West Bank (such as Joseph's Tomb in Nablus, the Cave of the Patriarchs in Hebron, the Tomb of Rachel, etc.) In the case of Palestine, Palestinians will lose the complete Right of Return and will have to accept that some of them will never be able to live in the house that their grandparents or great-grandparents lived in. Palestine most likely will be a demilitarized region, which means that Palestinians would require faith in their allies and protectors to maintain a proper defense.

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The benefits and problems to Israelis and Palestinians concerning the creation of a Palestinian State along the 1967 borders with acceptable landswaps are relatively straightforward.

The benefit that accrues to Israelis is that Israel can remain a Jewish-majority state and therefore fulfill the mission for which it was created: to be a Jewish and Democratic State. The benefit that accrues to the Palestinians is that they finally have a state in which to determine their own future as opposed to the way that Israel and the other Arab States have treated them.

The disadvantages are rather different. In the case of Israel, Israelis fear that an independent Palestinian State will allow for the development of terrorist Anti-Zionist groups that will target Israeli civilians. Israeli Settlers will most likely be ordered to leave the Palestinian State and those areas will become essentially Judenrein. Finally, Jews will likely lose access to the innumerable Jewish Holy Sites in the West Bank (such as Joseph's Tomb in Nablus, the Cave of the Patriarchs in Hebron, the Tomb of Rachel, etc.) In the case of Palestine, Palestinians will lose the complete Right of Return and will have to accept that some of them will never be able to live in the house that their grandparents or great-grandparents lived in. Palestine most likely will be a demilitarized region, which means that Palestinians would require faith in their allies and protectors to maintain a proper defense.

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Q: What would be the advantages and disadvantages of a Palestinian state in the Gaza Strip and West Bank areas for both Israelis and Palestinians?
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