For the sake of argument let's say that you Sirs were born in Southern California and lived in the same home of your birth for your entire life
Am I American or am I Mexican?
the United States has made an arrangement to where you are no longer a citizen of the United States
So, I must be either Mexican or an illegal alien, correct?
The house you were born in and lived your entire life in will remain a part of the United States, but you are now officially a resident of a new independent homeland called The United States Territorial Possession of Mexico (USTPM). It is shown to you on a map and you've never even been there. Because you are no longer a United States citizen, you must pay a substantially increased amount of property taxes for your home
If I'm not an American or a legal resident, I can see why
Now having read this scenario, would you consider the United States in this scenario a democratic government? Would you like to live in such a state?
Yes, for those who are American. And living there would be dependent on if I could become a legal resident, or more so, if I wanted to
This very thing happens in Israel. Why is it right for them to have such discriminatory policies?
Simple, their existance depends on such. If these palestinian/mexicans were simply absorbed, their allegience and devotion would not be towards Israel or America. At the point where there's a majority of such folks, the literal foundation of that country would irreparably be changed, as they would make the decisions for what the country is to become. Now, you could argue, "if that's the will of the people....?". I would argue that I'm referencing the culture of the country, the founding documents, what it means to be American/Israeli, not some mish mash of every culture, with no sense of country, outside the one you came from. That's not what America is, now for that matter, Israel either.
And FYI, you do realize that most of the surrounding Arab countries won't allow Palestinians to become citizens of their country either, right?