There are lots of Israelis living in the west bank, they aren't going anywhere nor is their presence harmful to anyone (nationalist feelings aside). Palastinians would vote to the PA, and they will decide their own taxes and laws, ext (as is the case now). The Israelis will vote to the Knesset. Besides the lack of arms to the PA, this isn't too far from where it is now. This is of course not apartheid, just a reasonable way to live side by side.