While I understand why the Law of Return (guaranteeing Israeli citizenship to any Jew anywhere in the world) seems unfair to the 750,000 Palestinians who cannot return to the homes they lost during Israel's war of independence, bear in mind a couple of things.
900,000 Jews were driven from Arab countries and their homes, property and businesses seized in retaliation for the establishment of Israel, yet nobody ever demands that THEY have a right of return or compensation for everything stolen from them. They were granted safe haven in Israel, whereas the Arab countries refused to grant citizenship to the Palestinians and banned them from many professions.
Between 1948 and 1967, Egypt controlled Gaza and Jordan controlled the West Bank. Either country could have given this territory to the Palestinians for an independent state. Neither did.
History has shown that the Jews need their own state, as a matter of self-preservation. The right of return would be demographic suicide, and moderate Palestinian leaders understand this and have moved away from this demand. This makes the intransigence of Israel's leadership vis-a-vis the occupied territories even more puzzling: if the Palestinians had their own state, the issue of Palestinian claims within Israel would lose its potency.
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