Because they’re a minority. Look at what happens when Jews are a minority in a Muslim-majority country.
Even if Palestinian Arabs could get okay with Jews it would be a powder keg long term. Because the whole Muslim world hates the idea of Jews in the holy land, and uses Palestinians as a proxy against Jews. I’m from a “moderate” Muslim country. Out of thousands of Jews that used to live in the country, only a few families are left (openly). It’s really as bad as people think.