I would assume that the people would get Isralei citizenship too if they marry an Isralei.
Although it’s not the end of the world; I think it’s pretty unfair on people who are already married.
It's ridiculously unfair. Egypt certainly can't complain about Israel's residence permit policy concerning Israeli citizens marrying West Bank/Gazan Palestinians if they exile and strip the citizenship of Egyptians for marrying the "wrong" people, i.e. Israeli Jews, since I read the Arab ethnicity of an Israeli may be taken into account--mirroring Israel's de facto two-tier citizenship (though I recognise being an Israeli Arab is often freer than Arabs living in the neighbouring dictatorships).
If the Egyptians only receive residency in Israel and not citizenship, this probably violates international law by making the ex-Egyptian stateless.