No droberts, the world would still protect a terrorist Palestine, because of Arab oil.
And make no mistake, it is almost a certainty that a Palestinian state would be a terrorist state, or at minimum harbour terrorist groups.
For the same reasons that Arafat does not act against the groups now, so would any government not act against them then.
The problem is that these groups would be MUCH stronger because of uncontrolled borders and opportunity to get weapons of mass destruction.
Your "solution" is no solution at all, just an invitation to a much wider and more lethal conflict.