Israel hasn't displaced anyone in Gaza. For 30 years they had the opportunity to build their economy, stop terrorizing Israel, and work towards peace. Indeed, many Gazans tried just that (and still want it)!
The Arab nations don't have to take a lot, just enough to recognize this is a problem shared by everyone. But they won't for various political reasons. As for Israel's expansion in the West Bank. You know, there's NO shortage of land in the Middle East. The West Bank is desirable because it is NEAR Tel Aviv and in Israel. Indeed, much of the terrorism is the effort of other state actors trying to prevent Palestinians from living in peace in Israel.
If I'm a young person, like I give a shit who's running the local DMV? ;)