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Idk if Israelis would be the majority. You would probably have all the Palestinian refugees, whose refugee status is inheritetd, come back. That would be about another 5.6 million. One state would probably lead to complete chaos. And let's not pretend Palestinians and surrounding Arab states would be kind "overlords". There is a reason so many Jews from Arab nations fled to Israel.
Who would be able to vote? I was assuming just the people in the area, but yeah that's another non democratic question.
I agree with your comment on the surrounding states. If Israel was dissolved, it likely would just be consumed by surrounding nations instead of getting self determination.