There already exists a Palestinian Arab state, independent since 1928 or so- Transjordan ( now called Jordan). It was formed from 77+% of the Mandate Palestine territory to be the Arab homeland , since Great Britain did not think it could implement the Mandate terms that "nothing shall be done which may prejudice the civil and religious rights of existing non-Jewish communities in Palestine, or the rights and political status enjoyed by Jews in any other country."
Of course, the rights and political status of Jews in any other country were also ignored, as the Arab homeland had a prohibition on Jewish property ownership or settlement.