You're touching on a very true point by saying that the high-level ideas, like ancient homelands or Marxist theory, create a lot of argument that in the end seems to distract people from the obvious reality, which is the mass slaughter of civilians, many of them children.
In reality, the challenge remains, what is a better solution from the Israeli perspective? If the proposed alternative is they all pack up and leave or dissolve their government, there is 0% chance that will happen.
It may be in the interests of someone to kill a witness to a murder, but it's up to law and society to stop them. Likewise I am sure plenty of genocides have been in the interests of the victors, but it is up to law and civlization to stop them. What I am not sure about is that it is truly in Israel's interest to be known forevermore as one of the racial exterminators in mankind's long and fraught history.
It seems like you are dodging the question by claiming it doesnt matter what Israel wants or will accept (like a murderer). Do you actually think that is true in reality, or do you simply wish that it did not matter?