You said they had no place to go, they can stay and inside Israel they do participate in Israeli democracy, In the West Bank they are under the Authority of the Palestinian Authority, which voted for FATAH/PLO 14 years ago but in typical Arab fashion haven't had another election. In Gaza they are ruled by Hammas who they voted in democratically, why are you complaining?

Notice how the West Bank hasn't been bombed?

That's because they haven't attacked Israel with missiles!