This really sums the whole thing up, doesn't it? What you have essentially done here is cast the entire debate in exclusively religious terms. While this may be correct, are you sure you want to go down this road? Making arguments such as "God promised Israel to the Jews" in a secular, or even a religious, but non-Jewish, environment is nonsensical because it is based on a presumption that there is a single understanding of God's will that always coincides with Israel's best interests in the world. The problem here is that every other religion can make the same claim.
The danger here for Israel is that the relevance of Judaism in the modern world comes into serious question. From an outsider's perspective, it would seem that every Jew who relies on this "Divine plan" as an argument in support of their cause in this issue must justify to himself that this "Divine plan," is still, in fact, applicable. In light of modern Israel's development as a thoroughly secular state, I wonder if it still is.
Did you NOT read the title of this thread?" Vatican Condemns Israels Ban on Arafats Travels to Bethlehem". If the rome cult deigns to make these silly little pronouncements the debate is already in "exclusively religious terms". Since the rome cult also falsely claims control over Christianity, the Biblical basis or, as usual when catholic idiocy is concerned the LACK of Biblical basis for their position is a reasonable matter to examine.
As usual, the pope needs to shut his trap and mind his own own business.