One big problem with the Palestinians has been that nobody wanted them - they couldn’t leave. Countries that tried, suffered terrible repercussions (Syria’s Black September, Lebanon’s civil war).
Palestinians were used as pawns in the Arab-Israeli conflict, with the Arab countries wanting to use them to swamp the Jews demographically.
The Palestinians - relatively urban and modern compared to most Arabs - were left to live under the rule of terrorist gangs for decades (generations, actually).
It is probably an unintended side effect of Obama’s desire to pack muslims into the US, that he has strategically relieved Arab demographic pressure on a future Israeli-Palestinian settlement. From the article, it seems that the US has been taking a lot of the young (doing particular demographic damage) and poor (who would be more difficult to place elsewhere).
If the UN funding suddenly got cut off for Palestinian “refugees” who have been living in the same town for fifty years, and neighboring countries were incentivized or pressured to open their doors to Palestinian resettlement, there is now an opportunity for a demographically stable settlement that could significantly secure Israel as a Jewish State.