You might want to update things a bit from 2004.
"Certainly, many Palestinians are sceptical that a full withdrawal from Gaza will ever take place."
The withdrawal did take place, abandoning every settlement in Gaza, and the result was the immediate construction of a terrorist-controlled armed camp to attack Israel. This could have been predicted by anybody with a brain.
There is no reason whatsoever to believe that the results would be any different if Israelis completely abandoned the West Bank or the Golan Heights.
I find it interesting that the underlying premise is that there shall be no Jews at all living in Arab territory. About 20 percent of Israeli citizens are Arab, and I have yet to hear about any Arab neighborhood being called a "Palestinian settlement."
There are about 300 mosques in Israel, most of them constructed in the past 20 years. You're welcome to count the synagogues in Arab nations.