The point should be to allow "Palestinian" arabs to go live in a Palestinian state, whereever it should be. that is the point of Israeli "right of return" and WE INVENTED THE TERM, SO WE DEFINED IT! What is more important, having their own state and self-sovereignty, or a specific area of land as opposed to another, particularly when there would be more land to distribute in another place.
WHY is the land so important.
Its not the home of the religion. Its not even the historic home for the VAST majority of Palestinian Arabs, as you can tell by the fact that most have closer relatives in Jordan and Syria than many of the people who are their neighbors.