The situation is very much analogous to South African Apartheid. In both cases, an insecure population at the helm of an ethnostate sought to further deprive their state's already-disenfranchised co-residents of legal rights, in an effort to achieve security for themselves. White South Africans made the exact same arguments as Israelis, and in fact collaborated extensively with Israeli security services because they understood that the exact same groups opposed to South African Apartheid were the most potent opponents of Israeli apartheid. The Israelis remained staunch allies of the South Africans long after the rest of the world had decided to isolate them, because the Israelis understood implicitly that they were engaged in the same policies.

As to your question, I don't think a wise Israeli government would make every Palestinian a citizen tomorrow, but I think it is deeply unwise and immoral to further entrench the current policy of legal apartheid. The Israeli-Palestinian conflict will end in either ethnofascism and ethnic cleansing or some form of reconciliation, and this is a step towards ethnofascism.