The reason why so many who identify as Palestinians live outside of its borders is because Israel prevents them from returning. Your reference to this fact is though, as Ashrawi identified, an attempt to deceive. The fact is, the Palestinians do have a permanent resident population. Condition 1 met. As another has already identified, Israel prevents condition 2 and hasn't itself even met this condition. The Palestinians do have a government, Israel has acknowledged as much by transferring tax revenues to it. Tick for 3 and tick for 4 which is already in place. Now go and see if you've got a rabbit you can pull out of your hatch.
Poland's central bank head calls story of Nazi train find a hoax (Reuters)
from the article: Israel's grand illusion on Palestinian UN recognition