The "mistake" that was made then, and has compounded itself over the past 120 years is that no resettlement plan was made for the few people whom those early Zionists found on the land. They now have increased in number from just a few hundred thousand, to the millions who have somehow discovered that they are a "state" and named themselves the "Palestinians" of today.
Few in the West doubt the Biblical validity of the Israeli claim to their homeland, or the historical absurdity of the 'Palestinian' claim to statehood. But, boil the rhetoric and the religion off the case: most of the descendants of those miserable few people who were on the land, have yet to be resettled somewhere else. IMHO, that has to happen before there is going to be peace.
I once had proposed massive reparations and subsidized homesteading elsewhere in Islam. Arthurus wisely suggested that we call it "Eminent Domain," and get the Palestinians out with compensation in much the same way the state of Ohio is taking 15 acres from me, and more from my neighbors, as we speak. I and my neighbors are not happy with the amount, and neither is the state, but we have had our day in court and it's a done deal. On with life. The law says it's not mine anymore. Period.
Yes, Israel has the Bible on its side. But why not take a truly Solomonic initiative? Couple the Bible with the undoubted force of the IDF and the Law. Get some cash on the table, with some deeds to homesteads elsewhere in the Islamic world, and the promise of endless development money. Handle the 'Palestinian' Problem before their phenomenal birthrate compounds it again.
I think it's worth thinking about for after Arafat. BTW, this is idea has some proponents in Israel, where private investors are buying Arab properties, including a very decent resettlement bonus, and legal help in getting out of Israel. (In the program of which I have some knowledge, the resettlement is to the USA. For some reason, I prefer Northeastern Iraq!)
Arab Israelis are citizens of the Israel with equal rights. In 1948, Israel's Declaration of Independence called upon the Arab inhabitants of Israel to "participate in the upbuilding of the State on the basis of full and equal citizenship and due representation in all its provisional and permanent institutions".The political involvement of the Arab sector is manifested through both national and municipal elections. Arab citizens run the political and administrative affairs of their own municipalities and advance Arab interests through their elected representatives in the Knesset, Israel's parliament. Arab Israelis have also held various government positions, including that of deputy minister. At present a member of the Druze community is serving as a government minister.
The Declaration also promises that Israel will "ensure complete equality of social and political rights to all its inhabitants irrespective of religion, race or sex" and guarantees "freedom of religion, conscience, language, education and culture".
Israel has extensive anti-discrimination laws. Moreover, since the founding of the State, the status of Arab Israeli women has been significantly improved by legislation stipulating equal rights for women and prohibition of polygamy and child marriage. Israel remains one of the few countries in the Middle East where women enjoy equality in rights and personal freedoms, including the right to vote and be elected to local and national office.
The only legal distinction between Arab and Jewish citizens is not one of rights, but rather of civic duty. Since Israel's establishment, Arab citizens have been exempted from compulsory service in the Israel Defense Forces (IDF). This exemption was made out of consideration for their family, religious and cultural affiliations with the Palestinians and the rest of the Arab world, given the on-going conflict. Still, volunteer military service is encouraged and IDF service was made mandatory for Druze and Circassian men at the request of their community leaders.