There are 2 reasons why this relocation plan will never fly:
1. The Palestinians believe, with some justification, that if they leave they will never be allowed to return.
2. Jordan, Lebanon, Kuwait and other Arab nations have accepted Palestinian refugees in the past and soon came to regret it. Palestinian extremists assassinated the Jordanian King and tried to overthrow the government. Palestinian refugees openly welcome the Iraqi invaders when they took over Kuwait. Palestinian refugees contributed to the unrest that led to Lebanon's decades long civil war. Palestinian groups have ties to the outlawed Muslim Brotherhood in Egypt.
A sizable percent of Palestinians have been radicalized by generations of grievances, so they often do not live peaceably with their neighbors. Arabs don't like to admit it publicly, but they don't want the Palestinians to settle in their country.