Israel, if it is farsighted and wise, has a grim opportunity in the emergence of Islamic State Sinai Province. It can sign a defense treaty with Egypt to ensure the territorial integrity of Egypt. Israel’s gain would be the undertaking of Egypt to grant palestinians on Egyptian territory Egyptian citizenship, removing the malign influence that the UN Relief and Works Agency (UNRWA) is having over the Palestinian situation the only sure way possible, by removing its reason for being in a decent, humanitarian way by settling Palestinian refugees into a normal status, in this case as citizens of Egypt.
This line of thinking does assume that Egypt’s military will be unsuccessful in stopping IS Sinai Province from controlling territory, either part or all of Sinai. It further assumes that the Muslim Brotherhood in Gaza/Hamas will be assisting ISSP in its efforts, justifying an Egyptian takeover of Gaza to root them out. Now is the time for the negotiations to start, if they haven’t already started.
Without refugee status, and the unique UN agency to support Palestinians in their grievances, Palestinians will tend to disperse, tend to get jobs, and as they get more invested into the existing legal system, tend to reduce their jihad to lawfare seeking reparations for their losses in both properties and suffering. Eventually Israel will write a big check and be happy to end this chapter in their history.