The PA-Palestinian Authority and Hamas-ruled Gaza are horrendously corrupt and cruel.Of course, their lives are in danger if they give that reason. For close to six years I worked with Arabs in Yafiz, Sha'ar Binyamin. We had many Arab customers, and there are always Arab workers in Yafiz and Rami Levy.
The Arab customers and I would communicate in Hebrew, English and pantomime. I even learned a few words in Arabic, like nus, which means half, so I could tell them that we had a "half-price sale."
In the early years I worked there, we'd have a lot of Arab customers, especially those who had lived abroad and/or worked for some of the NGOs. For them, shopping in the "Israeli island/oasis" of Sha'ar Binyamin was "like being in America." That's what they would tell me.
It also used to be common for vans loaded with Jordanian (and other Arab) tourists to arrive in Sha'ar Binyamin for "shopping tours," like what you see in American "outlet shopping centers/malls." Arab businessmen would tell me that they were buying for their wives and children, "because you have better children's clothes than in Dubai/Kuwait."
But the last couple of years I worked in Yafiz, there were far fewer Arab customers. We were told that the PA-Palestinian Authority had been enforcing a boycott of Israeli stores. There were even roadblocks by PA Policemen who would confiscate whatever they found in Rami Levy or Yafiz bags.
Another reason that Arabs prefer Israeli citizenship is the health and social benefits Israelis get. The Israeli minimum wage is considered an excellent salary for those Arabs not "on the take." And Israeli medical care is among the best in the world. The healthcare system is also superior and less expensive than you have in most of the world.
And of course, as Israeli citizens, Arabs can live in Israel and not be dependent on the whims of the corrupt and cruel Fatah and Hamas.