The bulk of Jewish and Palestinian people in Israel during the founding were similarly recent turn-of-the-century migrants from elsewhere in the Middle East to relatively low-population areas previously lived in by Bedouins and Druze.

The standards you're raising are arbitrary and can apply to all of the other countries that were drawn up after the breakup of the Ottoman Empire. Many forcibly expelled their Jewish population, while Israel at least offered all residents first-class citizenship. It's tragic that Pan-Arab Nationalist neighbors convinced so many to reject and rebel, and then offered no aid after.