Yeah, I don’t know how to solve the issues of two separate families feeling ownership for the same location (fifty years ago, a Palestinian family including several living members was evicted from a home, and an Israeli couple moved in and then died, leaving their property to their children who played no role in taking the property from the Palestinians), but the solution is not to deport all of the Israelis from the region.
My first instinct would be that the government would need to build a LOT of desirable housing and offer a cash incentive to all current and former residents to cede ownership claims to other properties in exchange for the deed to one of the newer properties, but it immediately occurs to me that the wealth difference between the average Palestinian family and the average Israeli family is probably large enough that there would essentially be a self-selection bias. Especially given the fact that poverty and food insecurity reduce our ability to make good financial decisions.
I can’t think of a resolution for that situation that doesn’t involve someone feeling resentful. I’m not saying they have equal claim- but I know that the descendants of settlers are also people, who don’t want to be evicted from the (stolen) houses in which they were raised, and sowing resentment has not helped the region in the past.