Palestine was a british colony which was turned partly into the modern state of israel.
The original plan was to split Palestine into too soveriegn nations Israel and Palestine, but this never happenned.
Israel has historically not supported a free state of Palestine. In addition they discriminate against non jews in Israel.
Who deserves the land...well much of the world is occupied by people who came from somewhere else, and we are not just talking about white people here, we are talking Han Chinese (who are still taking land from non Han Chinese) and well just about every part of the world. It would be nice if people could share and work together.
America supports Israel but for a whole range of reasons and tends be a little bit blind to Israel's transgressions.
Communist powers also historically supported Israel, which up until the collapse of the soviet union gave Israel a unique place in the world.
How to resolve this conflict?
Well the current situation looks like once again the Jews will be kicked out of the land of milk and honey eventually...again (it will be the 3 rd time in 2000 years).
Perhaps it is better if we all just learn to get along.
I think we are one world war away from a global community that could deal with these issues, and prevent international injustice against both palestinians and Jews.