There are already a whole lot of Arab States, however that doesn’t change anything for those people who happen to be living on the current land they are right now. They’re not going anywhere. They’ve got time on their side and the “demographic time bomb” in their pocket.
The Jews WILL NOT incorporate “that land” into Israel proper, because they do not want to be turned into an Arab state. It’s that simple.
And that’s why it’s the JEWS themselves who want two states, while the Palestinians don’t.
If they have a beef they should take it up with his successors.
Of course the main point is not to provide the Palistinians with a homeland. They are being used by Islam as a wedge to ultimately drive the Israelis out of the ME, it won't matter if they are granted their own state.