Religious issues aside, here is the problem with the Right of Return:
60 years ago, there was a war, and a bunch of refugees left. There were a couple incidents when they were forcefully kicked out, but those were isolated. For the most part, people left either fleeing from the war or in a way of helping the invading armies.
After the war, I have heard two version of the story: 1) they refused to return, because they don’t believe that the State of Israel can exist. They practically abandoned their homes. 2) They were not allowed to return, because they wouldn’t pledge citizenship to the State of Israel, and it was feared that they would ally themselves with Arabs if those invaded again.
Meanwhile, their homes were resettled by the influx of Jewish refugees from Arabic countries.
60 years passed. Now, in order to bring back the Arabs, we have to displace thousands of Jews who have lived on the land they settled and improved for a few generations.
The world has moved on. The refugees need to be paid the value of the land that they abandoned (not the current value, but the value that it would have without all the improvements) – which Israel is happy to do – and allowed to settle wherever they wish.
At the same time, there is another nuance.
Imagine a libertarian society of Texas. It has a bunch of Mexicans living next to Whites. Then a war with Mexico starts. Mexicans leave to Mexico, and Whites defeat the Mexicans. Then the original Mexican Texans want to return to their homes. But the White Texans say: “We don’t want you living next to us, because if ever a war with Mexicans starts again, you will pose a security risk. If we can demonstrate that this is the case, we have a right to defend ourselves against the risk that your presence poses.”
It’s true that this situation is against libertarian principles, but it does seem absurd that the White Texans must agree to the danger of living next to the allies of their enemies.