Philospher,
You are wrong when you write that no one is keeping the Palestinians stateless. Israel will not let them become citizens of Israel because doing so would create a situation where there would be enough non Jews in the country to vote in a way that would destroy the Israel’s Jewish character. It would no longer be a Jewish and Democratic state if there are too many Non Jews in it. Israel also won’t let create their state. They are genuinely stuck in a bad situation.
The problem is that you have 2 groups of people living on a piece land and both believe they have the right to self determination.
So there are 3 options:
1.) A two state solution where both groups get their own state.
2.) A single democratic state in the whole area (It won’t be Jewish though, the majority of those living in such a state won’t be Jewish)
3.) An apartheid style single state where the non Jews can’t vote or have a say in the character of the state. (Problematic on moral grounds)