The deal-killer in the Saudi plan is allowing the return of anyone claiming to be a descendant of a Palestinian refugee to Israel. In essence, Israel would cease to exist.
Along with partitioning Jerusalem, perhaps there should also be a partition of Medina. According to the Quran, there used to be a large Jewish community there before they were killed and driven out by Muhammad.
And what about all the Shepardic and other Jews forced out of countries all over the Muslim world? Do their descendents get a right of return, or at least compensation. From the pillars of Hercules to the Tigris and Euphrates valley. With the most recent bunch (of any size) being from Ethiopia. One notable group around 45,000 were spirited out of Yemen in 1950 in Operation Magic Carpet. At the same time, Jews were evacuated from Aden (now part of Yemen), Djibouti, and Asmara in Eritrea.
Jewish tribes lived and traveled bedouin-like throughout Saudi, and even fought alongside Mohammed’s armies until the Mohammed turned on them. To me, Mohammed’s turn about against the Jews was parallel to how Luther centuries-later turned on them.