Gilead Sher and Gideon Biger have published a position paper, Jewish Enclaves in a Palestinian State. They discuss the proposal of Rabbi Menahem Froman's Eretz Shalom ("Land of Peace") movement which
...posits that under a peace agreement with the Palestinians, settlers who wish to give up their Israeli citizenship and receive Palestinian citizenship may do so, as long as they remain in their current locations. In their view, a Jewish minority will ensure democracy in the Palestinian state.
(I am not sure of that relinquishing citizenship part, however. And see this: "They want to defer talk of a political solution to a later stage. But the direction is clear: a binational state, which Eliaz Cohen openly preaches, and which even Amrussi prefers over the other options; or a Palestinian state in which the settlers will remain as citizens bearing equal rights, according to Pachnik, or even as people "under the protection of" - an idea attributed to Rabbi Froman during his contacts with Hamas.")
What will happen a la Sher/Biger?
A massive evacuation of settlements located outside the large settlement blocs, home to about 100,000 residents, will be necessary... if future Israeli governments seek (or are required to) implement the principle implied by two states for two peoples. This will be highly challenging, traumatic from a human and societal perspective, and politically problematic...the idea of retaining Jewish settlements as enclaves within the borders of a Palestinian state, provided that it is in the context of a permanent agreement that brings about an end to the conflict...appears impractical, first and foremost from a security perspective...
...The idea itself is not new...There are territorial enclaves that extend over large areas of thousands of square kilometers...The world political map shows approximately 300 territorial enclaves. Some 200 of them are located near the border between India and Bangladesh, some 20 are found on the border between Holland and Belgium, and the rest are located in various areas of Europe and Asia.
The Jewish settlements outside the large settlement blocs in the West Bank can be divided into three categories of enclaves: sovereign Israeli enclaves within Palestinian territory; autonomous Israeli settlements under Palestinian sovereignty; and settlements of Jews in the territory of a Palestinian state with no special status.
Shiloh, they include in the second category, that will be in an "autonomous" area:-
The largest settlements – Ariel, Ma’aleh Adumim, Efrat, Kiryat Arba – with tens of thousands of residents, will remain under full Israeli sovereignty as part of the State of Israel, and their residents will remain Israeli citizens...Ten mid-size settlements, each home to between 2,000 and 7,000 people, will be in the territory of the Palestinian state and under its sovereignty, but they will conduct themselves as if they were autonomous in all respects. These settlements are Beit El, Ofra, Emanuel, Kfar Adumim, Kochav Yaacov, Eli, Kedumim, Talmon, Karnei Shomron, and Shiloh.
...The residents of some sixty-five small and isolated settlements with a total population of 36,000 who decide to remain in their homes will be able to retain their Israeli citizenship and also receive Palestinian citizenship. These settlements will be under the full sovereignty of the Palestinian state...A permanent status agreement on the basis of the principles reviewed here could ensure the continued existence of some of the Jewish settlements and make forced evacuations unnecessary. The residents themselves will choose whether to remain in their homes.
Their prognosis is that
Over time, some and perhaps most of this population will choose to return to the borders of the State of Israel of their own volition and receive compensation for the private property they left behind in the settlements, while others will remain willingly within the borders of a Palestinian state on the basis of the proposed models. This action will be taken freely and without the use of force, and occur over a lengthy period of time.
...The land of the settlements in the second category (autonomy) and the third category (residence and citizenship) will be under the sovereignty of a Palestinian state, and thus it will not be necessary to “pay” for them with territory west of the Green Line.
So, will there be peace?
Nevertheless, there is a decided possibility of friction and clashes between the enclaves and their Palestinian surroundings, which could develop into a state of high intensity open conflict. Many experts believe that from
political, security, and practical aspects, the idea is not at all feasible, even in a state of full peace.
So how come Arabs manage to live in Israel, as citizens, who elect and are elected? Play in soccer teams, serve as judges, as soldiers, as policemen, as government clerks, as students, as university lecturers?
Academics in clean and quiet rooms planning the future.
From Dr. Lerner's comments:
I am embarrassed for Gilead Sher...Gideon Sher is an adult who has been involved in Oslo for many years.
He has absolutely no excuse for being associated with the farcical item...He apparently knows damn well that the idea is a joke.
That's why he covers his backside with the following caveat: "Nevertheless, there is a decided possibility of friction and clashes between the enclaves and their Palestinian surroundings, which could develop into a state of high intensity open conflict. Many experts believe that from political, security, and practical aspects, the idea is not at all feasible, even in a state of full peace."
If Gilead Sher wants to make a constructive contribution to the policymaking process, he would be well advised to make policy recommendations that don't require such caveats...
Oh, and there's this 2006 study. And this book.