@Oodiks
As you know most of the registered Palestinian refugees are not refugees at all in any sense from the definition set out by the UNHCR. They could definitely be absorbed by UNHCR.
The obvious place to begin with dismantling UNWRA is the Palestinian Authority. UNWRA’s operations should be merged with those of the Palestinian Authority. Donor states could divert all financial support earmarked for running schools and hospitals toward the Palestinian Authority. From a practical perspective nothing would change but the sign on the door.
In Jordan, there are 2.2 million refugees registered most of these are citizens of Jordan - so not actually refugees under the definition used by UNHCR for all other refugees in the world. Most do not use UNWRA services and UNWRA’s budget for Jordan is relatively low, compared to the number of refugees it registers there. There is no reason for UNWRA to operate in Jordan at all. Donor states could directly transfer their aid budgets for UNWRA in Jordan and chart a path for the Jordanian Government to take over to provide the health and school services as it does for all of it’s other citizens.
Syria didn’t grant Palestinian refugees citizenship but allowed them entry into the economy and civil rights on par with Syrian citizens.
After the Syrian war it is highly likely there is only a fraction of the half a million refugees registered by UNWRA are actually residing in Syria. Many fled from the war to other countries and have become citizens of other countries (even though they are still counted on the refugee list in Syria). All those residing in Syria, should be transferred to the care and protection of UNHCR. In doing so, they would become official refugees subject to the protection UNHCR. The funding for UNWRA in Syria would be transferred to UNHCR which would operate in the same manner that it operates with other refugees populations around the world. It would seek and implement individual solutions that would end their refugee status either by becoming full citizens of Syria or resettling elsewhere.
In Lebanon the Palestinian refugees have been treated the worst. Lebanon did not make the Palestinians citizens, they were not integrated into the economy. The Palestinian refugees and their descendants in Lebanon have been prohibited from employment in over twenty professions and their ability to enter and exit the country is highly limited. Around half live in refugee camps and many live in dire poverty. The policy with respect to refugees in Lebanon should be, as with the refugees from Syria to transfer responsibility for Palestinian registered refugees from UNWRA to UNHCR. In 2017 an official census in Lebanon found that the number of registered refugees living there was only one-third of the number in UNWRA’s records. Since the refugee population is much smaller than previously thought it should be easier to find individual solutions for them. UNHCR would advocate to end the discriminatory regime against them in Lebanon, while it would also seek solutions of resettlement in third countries and even attempt to naturalisation in Lebanon.