It’s a possibility that has been raised in the past, but with the current round of peace talks apparently now well and truly dead, the Palestinian Liberation Organization (PLO) is giving serious talks to dismantling the Palestinian Authority (PA) entirely.
Under the Oslo Accords, the PA has some measure of autonomy in governance of 
West Bank Palestinian cities under Israeli occupation. The PA is pretty much perpetually on the verge of bankruptcy, relying on foreign aid and Israeli collected tax money, which Israel is often withholding for some perceived slight or other.
The PA was never really intended to be a long-term solution anyhow, and was meant to just give the Palestinians some autonomy until a final peace deal was reached that granted them full independence. Instead, it has become a caretaker for cities under seemingly permanent occupation.
Dismantling the PA would mean either conning the UN into taking over the territory directly, an unlikely proposition, or simply handing the keys back to Israel and forcing the Israeli military, the official governor of the occupied territories, to handle basic services in major cities.
That’s a lose-lose for the Israelis, who would be stuck with a major bill in providing those services to the cities, and would also face more direct blame when their policies cause hardship in cities that have come under their direct rule.
What the hell, life for Palestinians would be abysmal whatever the scenario.
I fail to see how this development would hurt Israel and/or help the Palestinians. As things stand, the vast majority of UN member nations have either officially recognized a Palestinian state or have made clear that they are ready to do so. If the Palestinians voluntarily disband their existing governmental structure, that will destroy the basis for their current recognition as a sovereign state and will leave them worse off than they are now. Given Israel's steadfast and increasing annexation of Palestinian lands and exercise of effective governance of the Palestinians over the past half-century, the dissolution of the PA would only strengthen and justify Israel's historic position that the Palestinians are incapable of governing their lands or themselves.
Richard. It will immediate make the jews a minority. How can they deny citixenship since the took the land? It is amaing disaster for Israel It means a one state solutation and the zionist last got a bunch of rusian to emmigrate but they only stayed long enough to leave. The world think of them as the smart people but this is looking like a really dumb move on thier part. They will as usual try to move the pals out but more are coming from syria.
UN members one by one, week after week, drip by drip, should start recognizing Israel's de facto annexation of the entire Mandate of Palestine. Immediate demands should be made for full civic equality, for full citizenship of all the residents of the country. This would focus the world's attention on the core principle of Zionism: Racism. The apartheid, the land where Arabs are by law forbidden to marry Jews, buy property, retain property, pursue careers could no longer be disguised. Justice is a prerequisite of a lasting peace and it will not come about until the injustice of the present slo-mo Genocide of Christians and Muslims taking place can be clearly defined.
Exactly what should be done. There will be a lot more moving from Syria via golan heights as time goes bye. It is a disaster for the zionist but one they created.
This move would discard all progress made toward a Palestinian state, all the admissions to organizations and all the recognition of statehood by a majority of the world (minus the US and Israel and close friends).
Therefore, this is tantamount to a formal decision to go for a one state solution. That may be more realistic, but it is a fundamental change. It is much more than shifting the occupation back onto Israel, though yes it is that too.
Personally, I think they should do this. But in fairness, it must be seen for what it is.
This is the plan in coordination with EU and USG, this plan is from few years back, heavily introduced and endorsed by people like Bill Clinton, Tony Blair and in general EU governments. If its true and Palestinians going to establish the idea, the Israel next demand would be for Palestinians to recognize Israel as a Jewish state. By Obama and EU governing body being dominated by zionists entity, not imposing any sanctions against Israeli apartheid regime, therefore, such government demanding more by pointing out that even USG and EU is given up on Palestinians and their rights of self determinations. USG and EU governing systems know that, in political terms, USG and EU are their last chance, and Palestinians also know that they cannot trust either regimes.
If the Palestinians hand over the territory to Israel, Israel does indeed get stuck with the check for providing services and such for those de facto Israeli citizens. Israel, seeing just how expensive a proposition that's going to be, might be all too ready to sue for Palestinian independence at that point. Of course, they'll grab all the land they can in the process, but if the Palestinians don't accept independence at that point they become Israeli citizens and then the real fun begins when Israel really gets hit with world condemnation for discrimination and racism- right now they have a sliver of an excuse, but when the Palestinians become citizens? Oh the irony.
Once rhe Pals get full citizenshiip in Israel why would they want to leave The will be the majority and they will run the government. Stupid move on the zionist part. They should have created a separate nation and made sure all left but they decided to take more and now they will be the minority.
If they go forward with this, Israel will no longer be able to claim it is a democracy, much less the "only democracy in the Middle East." Of course, they have de facto ruled the entire area from the Mediterranean to the Jordan River since 1967, but the existence of the PA allowed them to claim the West Bank was not part of Israel.