The U.N did not establish Israel as the Jewish homeland. Israel had always been the Jewish homeland (look at the bible!), and Jews have had a continuous presence in Israel for over 3,000 years.
The name Palestine was given to Israel by the Romans who wanted to obliterate the connection between the Jews and their homeland.
Arabs rejected the United Nations resolution of November 29, 1947 calling for the establishment of two states in Palestine, with an all out war to eliminate Jews enacted by the Arab world. After the 1967 War -- another war of Arab aggression -- Israel recovered a small remnant (13% in whole) of what was promised to them by the UN -- eventually handing back the Sinai Desert for peace with Egypt in 1977.
Between 1948-1967, Jordan and Egypt, who governed the West Bank and Gaza, respectively, never offered to surrender those lands to form an independent Palestinian state. No Palestinian organization ever sought an independent state. No Arab country had even suggested its existence. An Arab Palestine has never been the name of any nation or state. 'Palestine' was a geographical term used only to identify administrative boundaries within larger empires, nothing more.
The purpose of a separate Palestinian State was defined faultlessly by the late Zoher Moessein, head of PLO bureau of military operation:
"There is no difference between Jordanians, Palestinians and Lebanese; we are all members of the same nation. Solely for political reasons are we careful to stress our identity as Palestinians. Since a separate State of Palestine would be an extra weapon in Arab hands to fight Zionism with. Yes, we do call for the creation of a Palestinian state for tactical reasons. Such a state would be a new means of continuing the battle against Zionism, and for Arab unity."
An offshoot of the occupation myth is the 'refugee' fabrication. It states that a significant portion of the Arab population was driven out of Israel by force during the 1948 War. It makes for good copy, but it's false. Egyptian activist, Edward Said, the most famous of these "refugees," for example, has been exposed as a fraud, as has this revisionist history.
Mark Twain, a man, one would think, as devoid of 'imperialistic Zionist' intentions, wrote in 1867 that Palestine was "a desolate country whose soil is rich enough but is given over wholly to weeds." Yet, Arabs have claimed that over a million refugees were forced from their homes during the 1948 War of Independence -- this number includes Arabs whose relatives entered Israel from 1946 onward. The number of Arab refugees is probably closer to 400,000, most of whom took it upon themselves to flee despite Jewish assurances that they would not be harmed. The contention that Arabs were removed by gunpoint is totally incorrect. Research by the Arab-sponsored Institute for Palestinians Studies in Beirut found that "the majority of the Arab refugees in 1948 were not expelled and 68 percent left without ever seeing an Israeli soldier."
In her meticulously researched book, From Time Immemorial, Joan Peters proves that a roughly equivalent number of Jewish refugees were expelled from Arab nations during the same period -- 120,000 from Iraq alone. It is estimated that one million immigrants were integrated into Israel's society from 1948-1950.
None of them, on the other hand, were confined for life to refugee camps.