Two observaions:
1. Is this a good idea? Put a whole lot of disenfranchised Palestinians in the same general vicinity as a network of terror cells working in the tri-border area?

2. Brazil, New Zealand, and Canada--where are all the oil-rich Arab countries who supposedly care the most about the plight of the Palestinians?

1. It's a lousy idea... for the very reasons you stated.

2. "arab countries that supposedly care"... - there's zero evidence of such endeavors. Considering the amount of money in circulation there and the amount of land, the whole palestinian issue could easily be a non-issue, if they cared, which clearly they don't. I guess that's not totally accurate - Jordan actually tried it with horrible (for them) consequences.