Spot on with a caveat. Other Arab countries don't want Palestinians because to open this door is justify Israel's real intention of "vomiting" out the Palestiniand from their traditional land.

There is this bit of information that's key to all of this. The author of the following quote, Juan Cole, in an article for Informed Comment:

"But for the more aggressive in the extremists’ ranks, of whom there is no shortage, the belief is that the Palestinians will be “vomited out” of the land. Indeed, for the most zealous, it is a mitzva, or good deed, to kill such people. The notion of attaining genuine peace with the Palestinians, a peace that would entail ceding land they believe God gave to the Jews in his covenant with the Jewish people, is not just scorned, it is seen as sacrilegious.

The extremists’ attitudes towards fellow Jewish citizens of Israel who are secular-minded and peace-oriented are no less loathsome. Many of them hold that efforts by any Israeli government to force Jews to withdraw from West Bank settlements are to be combated, including, if need be, by civil war. The increasing frequency of “price tag” operations, violent acts targeting Jewish Israeli citizens and Israeli military personnel perceived as blocking the extremists’ path, serves as a stark reminder of this threat."