There just isn't a workable path forward to accomplish it. The Arabs who live there harbor irredentist fantasies to overthrow the Israeli government and replace it with Hamas or some other dictatorial organ, and as long as that is true, Israel has no desire to hand out citizenship to those people.

Of course, the minute that ideology becomes anathema among Palestinian Arabs, the whole point is moot because Israelis will have their security and a two-state solution would immediately become workable.

You forgot the Genocide.

https://en.wikipedia.org/wiki/Gaza_genocide