“Sinai is in Egypt & the Egyptians do not want them.”
Carve out a piece of Sinai, with defined borders and make that the new Palestine. Sinai isn’t as populated as you might think it is and Egypt only uses a small percentage of it for their own economy. Egypt should enable a Palestinian state to be created there and they would be world heroes.
But that doesn’t really matter. This is why. If all the Israelis moved to whatever territory Egypt contributes and all the Palestinians moved into Israel, in five years the territory would be thriving. Meanwhile, Israel would be destroyed by the Palestinians and then they would complain about Israel and want that territory. When Gaza was handed to the Palestinians, the first thing they did was destroy all the greenhouses. They are a self-destructive people, hellbent on seeing the western world burned to the ground.
Again: Egypt does not want them - same as all other Arab Muslim countries. Only the US and Europe want the Palestine death-worshipers.
Further, Sinai is home to Bedouins and smugglers which give the Egyptian army no end of trouble. Any attempts to “carve pout” a part of that territory will result in open warfare with Egypt.