zahavasdad: Your question isn’t theoretical. If a significant number of rabbanim decide on civil disobedience (i.e. peaceful refusal to obey Israel laws), you have a very serious crisis. Mass civil disobedience is serious business (consider the role it played in collapsing the British Empire in India, and in ending “Jim Crow” in the United States). One possibility is that the Israeli government will back down and simply say “okay, you can fully autonomous – no conscription – no welfare or subsidies or access to government benefits”. However one has to remember that any policy would end up applying to Arabs as well, could raise serious legal questions under Israeli law, and raise serious issues of discrimination under international human rights standards. The stakes are really quite high, and most of the rabbanim are trying to as unconfrontational as possible in order to leave open a door for working out a solution.
However mass refusal to obey Israeli law would be even more devasting than any intifada since it involves Jews (who want to be left alone in peace, rather than Arabs who want to run the country) and doesn’t involve violence. And in the internet era, “the whole world will be watching.”