Anyone with any familiarity at all with the reality in Israel knows that an enormous majority of Arabs living in Israel would never dream of living in Palestine were there ever to be such a country, and it's not hard to fathom their line of reasoning: Israel is a free democracy with an ever-rising standard of living (and at the moment one of the strongest currencies in the world, but that's a different matter), while the Palestinians can be relied upon to screw up whatever chances they're offered with perfect consistency. That's why there was such an outcry among Israel's Arabs when in 2004 Arik Sharon proposed redrawing Israel's border so that the towns alongside the north-western flank of the West Bank be re-mapped into the West Bank. That's why Avigdor Lieberman is perhaps the most hated and feared of all Israeli politicians in the eyes of Israel's Arabs: he advocates a similar move. (And note: not a single Arab would have to leave his home. The border would simply be moved a few miles west, leaving the homes in putative Palestinian territory... shudder...).
Life for Israel's Arabs is far from perfect and leaves much to be desired, but it's a lot better than life in any other Arab country, unless you're a millionaire Saudi sheik or a fully subsidized citizen of a Gulf State living off oil and the sweat of disenfranchised Pakistanis.
It's also a well-known but never mentioned secret that the Arabs in East Jerusalem, who aren't even full Israeli citizens, dread the day the city will be divided and they'll end up on the Palestinian side; when Israel began putting up that evil wall a few years ago, tens of thousands of Palestinians scrambled to make sure they were inside it, on the Israeli side, and not outside it, on the Palestinian side. It doesn't take much imagination to understand them: would any of you make a different choice in their situation? Of course not.
Still, having said all that, it's still a bit surprising to read that 77% of the Palestinians who have Israeli citizenship, wouldn't want to live in any other country in the world. Not in America, not in Norway, not in Australia, not even in the UK, home of the Guardian. Nope. They want to stay in Israel. Moreover, if you follow the link, you'll find lots of other interesting statistics, almost all of them positive. I recommend.
Now, if you were a person who cares about people and their well-being, a mantle often claimed by the so called Progressives, or the political Left, or Liberals, depending on the country you live in, you would be celebrating all this, and perhaps even commending Israel for having proven that Arabs actually can be productive and functioning citizens in a modern democracy even in the Mideast, and not only when they move to New Jersey, and if so they can certainly be encouraged to do so in France, Algeria, Saudi Arabia or Lebanon. But I wouldn't recommend holding your breath until the praise starts coming in, not from those people anyway.