Goodness, bluke. First you tell me Palestinians are a myth,
and now you tell me they are (or were) actually Jews. If that is what you are saying, I will grant you that Jews and Palestinian Arabs are same people. They just seem to have some cultural or religious differences. Incidentally, in the mid to late 1950's I was living in New York City in the Lower East Side section of Manhattan. There were a lot of Jews in the neighborhood. One of the local movie theaters (on Clinton! Street) was in fact called Palestine. Today, in common usage, Palestinians are the Arabs of the region. Perhaps this shows the folly of putting to much weight on names.
In 1948, I was 8 years old, a "displaced person" of WW-II, and lived in a UN refuge camp in Germany. My world was small. Pardon me for not knowing the details of the negotiations on the creation of Israel (not that I can trust what you say). Actually, an international Jerusalem makes a lot of sense. It would remove some sharp points of friction. It would have been a Solomonic choice.
You may (or may not) remember the UAR, the United Arab Republic. Egypt and Iraq, IIRC. You like to lump all Arabs together and maybe you have a point. If these idiots could get along, perhaps what is needed is that they join politically including also Jordan, Syria, Lebanon, Saudi Arabia, Yemen, Oman, the other little kingdoms, and of course the Palestinian Arabs of the occupied territories. The US should get into the "democratic nation building" business again and give aid (same as to Israel on a per capita basis). It would clear up those refuge camps. Over time, peace would be assured. Does that sound like a plan to you? You definitely could not complain about where Arafat was born. :)
Israel did have definite borders in 1967 before the Arab attack. Those are the borders that very few would contest. If Israel wanted peace lifting the occupation of the lands beyond these borders would be a major step. Not doing so is the major cause of the troubles you face. There are other causes, to be sure.
Alex
Men never do evil so completely and cheerfully as when they do it from religious conviction. -- Blaise Pascal (1623-1662)