Most of the Arabs living there are Syrian Druze. I don't know if any Palestinians live in the Golan. A return of the Golan and removal of the settlements would most likely include full diplomatic relations with Syria including exchange of ambassadors. International monitors would likely be part of any withdrawal from the Golan.
This reminds me of a recent column by Israeli peace activist and former Knesset member; Uri Avnery:
"Lunch in Damascus"
link:
http://www.avnery-news.co.il/english/index.html 07/10/06
ONCE, WHILE traveling in a taxi, I had an argument with the driver - a profession associated in Israel with extreme right-wing views. I tried in vain to convince him of the desirability of peace with the Arabs. In our country, which has never seen a single day of peace in the last hundred years, peace can seem like something out of science fiction.
Suddenly I had an inspiration. "When we have peace," I said, "You can take your taxi in the morning and go to Damascus, have lunch there with real authentic Hummus and come back home in the evening."
He jumped at the idea. "Wow," he exclaimed, "If that happens, I shall take you with me for nothing!"
"And I shall treat you to lunch," I responded
He continued to dream. "If I could go to Damascus in my car, I could drive on from there all the way to Paris!"
.