Hitler was actually bent on global conquest, so ultimately how would he have been “OK with them going to Israel” except as a way to paint targets on their backs ultimately?
Mandatory Palestine (so-called) was designed as a Jewish refuge by the Brits per the Balfour Declaration. Only about 60,000 Jews were able to move from Germany to Israel between 1933 and 1939 due to the Ha’avara Agreement besides.
Hitler always railed against “International Jewish Finance” and how they would be responsible for the next World War, so how would have merely banishing them from Germany solved “the problem”?
Hitler wanted them all dead, period.