Actually, the Israelites MERGED with the native
peoples of Canaan. Despite the biblican injunctions not to do so, there is every evidence from the Bible that the Israelites simply assimilated with the previous inhabitants of the land. For one thing, when Israel conquered Jerusalem, King David bought the land upon which the Temple was to be built from the Jebsite owner. You don't have to buy land from people whom you have exterminated. For another, these peoples are mentioned numerous times in the post conquest books as living there with the Israelites. Heck, King David himself was descended in part from the Moabites.