Can anyone explain to me how the Palestinians fit into this equation? Oh, let's see, they only live there! The reason that are obliged to return the land is because it says so in the 4th Geneva Convention, which Israel signed, and which was written as a direct result of Nazi Germany trying to establish lebensraum. As a result, it is no longer allowed to settle an occupied land, or to unilaterally annex it (i.e. Jerusalem). Even the USA recognises that the settlements in the West Bank and E.Jerusalem are illegal.
Hungary's Orban: Refugees threaten Europe's Christian roots (Reuters)
from the article: Israel freezes UNESCO funding after Palestinian membership