I feel the Palestinians are as much hostage to their Muslim neighbours as they are to Israel.
Am I right in thinking- was it Syria? - where many of the Palestinian refugee camps were situated- made absolutely sure the Palestinians couldn't integrate into Syria and were kept in 'refugee camp conditions' as the Syrians wanted them to 'keep up the fight' against Israel, effectively making them pawns in a dispute that affects the whole region.
The Palestinians do seem to have an unerring ability to snatch defeat from the jaws of victory. They elect a government who refuses to recognise the legitimacy of the State of Israel, they were seen dancing on the streets when the news of 9/11 broke. Hamas site their rocket launchers in residential areas so Israel is more or less obligated, when retaliating, to fire on 'civilian' targets.
I feel very sorry for the rank and file of the Palestinian people. I believe the vast majority of them want peace and prosperity, and statehood- I also believe the vast majority would support the existence of State of Israel if it meant they could attain these 'rights'. But I also believe the people are being manipulated in an ideological war in which they are no more than bit players, fighting out Biblical Epic whilst others sit back and let them carry on. The 'Middle East' supports the Palestinians, The West supports Israel. The US needs a 'friendly' base in the Middle East which Israel supplies.
And speaking of biblical, I believe the Jewish people may have suffered some expulsions themselves over the millennia! Look up 'Jewish diaspora on Wiki.
Finally, personally I believe the Palestinians and Israel could reach an acceptable working solution themselvesitself if it weren't for the rest of the world taking sides.