Today, the whole world speaks of a need for the creation of a Palestinian state. The United Nations is going out of its way, the European Union is seeking quicker approaches and the United States administration has it number 
If Israel would fully implement the Saudi Initiative, then the state will self-destruct.
one on its agenda, as there are no other problems in the world. One nation that seems to have given it much thought is Saudi Arabia, which seems to truly care for the "Palestinian nation".
It was Saudi Arabia that came up with the Saudi Initiative back in 2002 that would allow the creation of Palestine inside Israel's current borders of Samaria, Judea and Gaza, and with Jerusalem as its capital. Also, it would allow about five million descendants of the so-called Arab "refugees" who fled Israel in 1948. At first, their initiative was not taken seriously, but as time passes, Israel is running out of options except to submit to the Saudi proposal.
Everyone knows that if Israel would fully implement the Saudi Initiative, then the state will self-destruct both military and demographically. Once Israel vacates the hilltops and removes more than half-a-million Jews, the Arab terrorists will be shooting rockets into the coastal cities. A small example of how the Arabs will be attacking may be seen around the Gaza Strip. Instead of rockets landing in the Gaza belt communities, they will be landing in major cities.
Inside what will be left out of Israel, the Arabs will quickly shift the demography and Israel will stop functioning as a Jewish State, resulting in massive emigration of Jews.
The other choice Israel has is to keep the situation the way it is right now, but nothing good will come out of it. The Arabs in greater Israel make up almost half of the population; and when a minority becomes the majority it does not allow itself to be treated as a group of second-class citizens. Also, the worldwide pressure, resulting from the activities of a variety of human right groups, will eventually force Israel to implement the Saudi plan.
Anything in between the Saudi Initiative and keeping greater Israel will only delay the moment the Saudi Initiative will be implemented. Arabs will never agree to live in an autonomy or have a small state, because it would not be humanly feasible. Furthermore, a new Arab mini-state will be breeding hatred and it will be only a matter of time until another war erupts. Then, it will not be that easy for Israel to enter a sovereign nation, as opposed to a subject territory.
On the other hand, if Saudi Arabia really cares for "Palestinians" and truly wants them to prosper and develop, then they can create the state of Palestine inside their own homeland. Saudi Arabia is the largest Arab country, 2,150,000 square kilometers (830,000 sq mi), with a population of only 27.6 million people.
Not only is the creation of Palestine impossible inside Israel due to overcrowding, but it will result in a general lack of resources for its inhabitants. Most of world Jewry will not allow it to happen. While many Jews, especially in the United States, speak of the peace process, they don't really mean it.
I once spoke to an old friend of mine who used to volunteer for one of the American Jewish establishment groups. He told me that everyone whom he knew was against a Palestine of any shape or size state inside Israel. However, to be accepted in political circles they had to speak of a peace process and especially land-for-peace. They always emphasized that Arabs have to accept Israel's existence as a Jewish State as well. Since it is well known that Arab leaders will never recognize this fact, this process will go in circles and will never reach its end point. My old friend was trying to convince me that it is okay to speak about a Palestine state and the flexibility of the Jewish people, which makes them not only politically correct, but more humane.
The only problem with this is that the whole process requires a lot of hypocrisy. The old generation may lie to themselves, but not to their children; and when their children grow up, they will believe it. Today's young generation of Jews are different from their parents and look differently at Israel.
The litmus test is simple. If the whole world really cares for "Palestinians", then it does not matter to them where they would live. Even if it meant creating a new state in the United States, since President Barack Obama really wants them to achieve statehood, after all, and this is his number one agenda item. 
It is up to the Jewish organizations right now to speak about moving the state of Palestine.
Relocating Arabs from Israel to Saudi Arabia, though, would be the best idea, since both peoples share the same language, ethnicity, religion, culture and much more. Besides, there never was a Palestinian nation; they are Arabs, part of the Arab nation to which the Arabs of Israel must and will be repatriated.
In my opinion, it is up to the Jewish organizations right now to speak about moving the state of Palestine into Saudi Arabia, lobbying on Capitol Hill, promoting this idea in the media and offering this plan to the American president. There is absolutely no other way. Keeping Arabs inside Israel will only result in a civil war. If the nations of the world who offer so much money and efforts reject this plan, then it would prove that they are not interested in solving the problems of the "Palestinians", rather they are focused on Israel's destruction, having failed after numerous attempts to destroy the Jewish Nation throughout the ages. Besides, those who stood by during the Holocaust, and when Israel faced destruction in 1948, 1967 and 1973, have nothing to teach us.