Q, whom do you think you are kidding? Firstly, I do not mis-state history, but you certainly ignore it.
There could have been a Palestinean in 1948 before the war. There could have been a Palestinean state any time between 1948 and 1967, had Jordan and Egypt assisted Palestineans instead of de-facto annexing the West Bank and Gaza. So tell me if Arabs would not form a Palestinean country, why should Israel have done so, back then?
If tiny Israel could take in millions of Jews from Iraq, Syria, Iran, Yemen, Ethiopia and Europe into an area about the size of New Jersey, it seems to me that Jordan, Egypt, Iraq, Saudi Arabia, and other Arab countries, covering an area probably a hundred fold larger, could have accommodated the then Palestinean population (which I think was significantly less than 2 million in 1948, but I'll give you that number.)
Jack-the Sailor, that is what I was obliquely stating above, and I think you really know it.