After World War I, the nation now called Jordan was established as the Palestinian homeland. Those living in the rest of Palestine were allowed to continue their lives without change.
The UN established the nation of Israel. Iraq, Syria, and Egypt convinced hundreds of thousands of Palestine residents to leave the region and created the Palestinian refugees. The current calls for "An independent Palestinian homeland" are really a call for a dumping ground for these refugees.
The problem is not religious (Israel is one of the most tolerant nations in the world). Israel accepts requests for citizenship from Palestinian refugees.
The US should declare support for Jordan as the Palestinian homeland and reject all attempts to form separate nations for Palestinian refugees as Jihadist.