@maxdancona,
No one, and certainly not Israel, is thinking about a Final Solution to resolve such concerns.
I don't recognize your bullet points as common rhetoric from the past, but even if it were, it would be patently false.
Jewish birth rates in Europe were not significantly different from those of non-Jews.
The reality of history is that Jews were invited, if not welcomed, into European nations because of their economic power.
Once the European powers took as much advantage of Jewish wealth as they could, they often turned on them.
Anti-Semitic rhetoric flowed not from a legitimate demographic concern, but a desire to welsh on national loans, or establish a national scape-goat.
This is not remotely similar to the Palestinian/Israeli situation.
We can argue forever whether or not Israel should have been established as a "Jewish State," but it was. I would argue that if ever a race or tribe deserved its own state in was the Jews.
I've no doubt that some innocent people, who now lay claim to Palestinian origins, got screwed in the process. I very seriously doubt that a Right to Return would be limited to these people. I also have little doubt that Israel would be fine in accommodating the relative few number of legitimate claims.
Do you think though that Hamas and the PLO would spend a second on making sure that the Palestinians that claimed the right to return had a legitimate claim?
Undoubtedly there are a relative handful of Palestinians who have familial ties to land now within Israeli borders, but to think that the issue of "The Right of Return," is predicated upon their plight is at best naive and at worst cynical to an extreme.
When did anyone in the world give a damn about desert nomads who self-identified as Palestinians, before Israel entered the picture? Do you think, for one moment, that these same Noble Nomads were treated with respect and generosity by Egypt, Syria and Jordan?
The Palestinian situation vis a vis Israel is nothing like the Jewish situation vis a vis Europe, and to suggest it is, defies an understanding of history and implies a desire to fit the world to one's partisan preferences.