I'm pretty sure you have some Middle East knowledge - let's see if you can help me out here :-).
D
The Palestinians are tarbabies. Very few of them were actually displaced by the creation of Israel, yet they've become the descendants of what really is a political and ethnic crusade. Most Palestinians never lived in Israel and have no real claim to be called refugees.
They are born into a culture which has a chip on its shoulder, to put it mildly. It makes them wholly unfit to try to improve their circumstances. Instead, everything can be explained in their lives as being the fault of the Jews.
I can't blame the other arab countries for not taking them in. What's in it for them? Additionally, it's not as if the Palestinians don't have a place to live. They're living there right now. The "refugee camps" are not tents in a compound. They are cities. What an abuse of the term.
In addition, the Palestinians are not looking to be absorbed by other countries. They want to live where they are, but they also want to live in the homes of Jews after they drive them into the sea. It's what they're all about.