Stalin would have starved or simply had them all killed...which history tells us is what he did.
A plan or odea (which would admittedly need to be fleshed out significantly) gives the Palestinians a chance, repeating it with each attack from amongst them, to resolve the problem of Palestinian terror themselves and puts the owness on them to do so (where it belongs)...with a prospect of earning a stable state of their own. If they refuse to do so, and continue to harbor and/or abett terror amongst themselves, then ultimately they are treated as the allies of terror they would reveal themselves to be.