Mawassi residents say life was better before 2005, when they were part of an Israeli settlement enclave. Few can find work now.
Israel to release up to 150 Palestinian prisoners later this month.
The Palestinian factions fought Saturday in the worst internal violence since Hamas's Gaza coup.
Hamas arrested senior Fatah officials in Gaza on Friday, capping off one of the worst weeks of conflict between the two Palestinian factions.
A permanent settlement in Maskiyot could hinder a faltering peace process as Palestinian and Israeli leaders meet with US secretary of State.
Israeli prime minister resigns from his post, but vows to pursue a deal with Palestinians and Syrians.
Tzipi Livni, Shaul Mofaz, and Bejamin Netanyahu are the top three politicians most likely to succeed Prime Minister Ehud Olmert, observers say.
Explosions and a Hamas-led crackdown on the rival Fatah Party has raised tensions to their highest levels since Hamas seized control of the Palestinian territory in 2007.