Sustain the Status Quo?

Although the current staus quo in Israel could be sustained, perhaps indefinitely, I think in the interest of self-defense Israel should annex Gaza, Judea, Samaria and the Glolan Heights.
Palestininians who swear allegiance to the State of Israel should be allowed to remain, those who will never accept a Jewish State should be compensated for the costs and logistics of immigration to Jordan or wherever else they wish to reside.
The world should assist in these costs.
During the next major escalation Gaza should be returned to Israeli control and along with Judea, Samaria and the Golan Heights .
These seem to me defensible borders.
Those knowledgeable about this situation have been saying for 40 years that the Palestinian leadership will never agree to recognizing Israel and ending hostilities.
The Palestinian people might agree to it, but I wonder if that is even a safe subject to discuss in Judea, Samaria and so on, wherever Palestinians congregate.
It certainly would not be a topic of discussion that I would feel comfortable having in Gaza if I were an Arab.
For decades now youth have been corrupted in PA schools, their minds warped, to the point that otherwise carefree and intelligent young people are brainwashed, they are, in a sense, Manchurian Candidates.
But I don't see them accepting a Jewish State on what it seems to me, and someone can correct me if I'm wrong, they believe is their country.
They will accept what they are given, no strings attached, like Gaza, but they won't take anything that requires them to accept the Jewish State.I guess what I and more and more people are advocating is pretty much basic Kahane.
Minus the religion, and I think within limits, Arabs who live in Israel and wish to remain as Israeli citizens should be allowed to stay.
Here is the question, do Bush and Obama say to Israel something like, "Look, be generous. Make yourselves look magnanimous, offer them the whole kit and kaboodle, throw in half of Jerusalem. You know and I know that they can't accept a deal that includes renouncing violence and recognizing Israel's right to exist."
Of course both Bush and Obama are aware of this truth.We've seen it over and over again.That's the way the "game" is played.
My deepest sympathy and condolences go out to the family of Shlomo Nativ, OBM.