Good point about the Cherokee, but on the other hand this should be viewed as a cautionary tale, not a necessity.
Also, good point about incentives. When groups like Hamas would rather derail any attempts to even let many of their own people retain or regain their own homes in order to enact revenge on Israel and be in complete control of the entire region, the idea that enough people would resettle is...doubtful on the short run. But it might happen in a generational way, if the incentives are large and the destination is nice.