Before there was an Israel...
in its latest post-1948 configuration, there was a country called Palestine.
Palestine was split up, 23% going to Israel, 77% became what is now known as Jordan.
Whether that was right or wrong is irrelevant. Anyone who owned land in what is now Israel and is still living is very old. If they get back what they lost they won't have it for long.
The Palestinians could just move into Jordan, which is just Palestine with a new name, calm down, shut up, and start to build a life.
Palestinians don't want a homeland. They want the Jews out of the middle east. You can't always have what you want.
Addendum: Don't forget Turkey. Only "democratic" ( actually a Republic ) Moslem country. Has the most freedom, in the Moslem world. Economically better off than most of the rest. They prefer to think that Turkey is European, rather than Middle Eastern. I think they straddle both regions.