They weren't forcibly displace; 75-80% of the Palestinian population was refused reentry to Israel after fleeing war. To me the difference is small.
Amusingly Bush is now pursuing a UN sanctioned strategy (the original 1947 mandate sanctioned 2 states - 1 jewish, 1 arab)
You are right, but then again, I would give second thought to giving re-entry to a bunch of people who left then fought along side the countries that immediately went to war with my country.
It is interesting, as you point out, that Bush wants anything to do with a UN plan, but i guess I have seen stranger things...