If the Palestinians want a state so badly I would suggest they go live with their terrorist friends the Saudis. The Jews have been kicked around for thousands of years, killed in massive numbers, and still the world doesn't feel they've 'given' enough. You give Palestinians a 'homeland' (which it really isn't considering they're just other Arab nationalities claiming to be Palestinians, they've already got homes) and the next thing you'll see is the Palestinians calling for dissolution of Israel
They were born there. In most cases their fathers were born there and their grandfathers. I's the only home that they know, miserable as it may be, and I'm suggesting that they may not be inclined to pull up stakes and move just because you might want them to.
Palestinians are no more a nationality of people than the Oompa Loompas. The Oompa Loompas at least have the homeland that Wonka gave them.