he said no israelis may live in a palestinian state, he did not say jews couldn't live there. they would merely have to become palestinian citisens.it is not unusual at all. is israel willing to let citisens of a future palestinian state live in israel? no.
furthermore, besides the original palestinians who remained during al nakba and who israel was compelled by international law and custom to keep as citisens, israel almost exclusively restricts allowing israeli citisenship to jews only.
israeli laws are specifically discriminatory towards those of palestinian ethnicity, particularly denying those people of palestinian ethnicity who marry israeli citisens from obtaining israeli ccitisenship.