However one counts it, 700,000 Arabs were either driven out by force or fled in 1948. (The Haganah report at the time concluded that under 5% had left due to urgings by invading Arab armies). That 700,000 lost land, homes and businesses, were never allowed back and were never compensated for it. That doesn't work post WW2, Israel owes these refugees and their descendants big style and big dollars. Attempts to equate the forced eviction of the Arabs with the later, and consequent, flight of Jews from Arab countries only works up to a point. The PLO/PA did not cause the flight from Morocco, Algeria etc. They are not responsible and cannot negotiate that, it is a matter for Israel to take up with the countries themselves and sort its own deal out. Israel has been avoiding the bill for 60 years now.
Supreme Court rejects plea for freeze on expansion of asylum seekers' detention (Haaretz)
from the article: Peace Plan: Trading settler Israelis for refugee Palestinians