It doesn't matter whether there was a recognized Palestinian state or not- the point is, the Palestinian people- a group which ALWAYS identified as Palestinian- has a deep connection to the land and it was morally wrong, and unnecessary for the creation of Israel- a state which would have had all the land it ever needed within the original partition proposal and which never had any claim to what no one but right-wing extremists still called "Judea and Samaria" in 1948- and it's long since been proved that the Arab leadership never called on ordinary Palestinians to leave temporarily but then come back later once the Arabs had supposedly won the battle.

The only way to get to peace is to acknowledge that both national communities have deep roots in the land and that peace can only be made if both are allowed to stay on the land and be recognized as having roots in it.