I'd believe Arabs eventually came to control the area after the Jews got kicked out. But the Jews controlled it before then. I don't think it's known precisely who the Canninites were or which ethnic groups represent them now, but I don't believe they were the genetic predicesors of the modern Palestinians.

Really the region is one that's been conquered and reconqured many many times. It might be the region that has changed hands the most between different civilizations in all the world.

And now both sides think they deserve whatever the maximum extant of their control was.

Personally I think Israel should allow/encourage/force the Arabs within Israel proper into the probably very nice settlement regions and make the officil boarders the UN approved ones.