That is not what I said. Arabs do see Palestine as an Arab state (as Palestinians see themselves as being Arabs, do speak arab etc). They also consider the Israeli/Palestinian problem as an Arab problem as well. But it does not follow that they consider All arabs alike and that a Palestinian can be moved to Oman or vice versa. Europeans can be very concerned about a problem concerning one of the European countries, but it does not follow that they will accept all the people of that country to move inside their country.
Speaking Arab does not render one Arab, just as much as Latin American who speaks Spanish is not a Spaniard. The Arab identity was until recently limited to the Arabian peninsula. It is a political project, like European integration. However, European integration doesn't pose the liability to minorities and neighbouring countries as Modern Pan-Arabism did to Iran, Turkey, Israel and blacks in Sudan and Kurds in Iraq.
In fact, Saddam Hussein sought to make Iraq view itself more as Mesopotamian instead of Arabic. Likewise, there are movements in Lebanon which stress Lebanon's Phoenician identity.
Faisal did not consider Palestinian to be proper Jordan Hashemites, he did indeed consider them Arabs (as they are, I dont really how that can be contested 

. The statue of the Palestinians refugee in Israel if they manage to return (which is realistically not going to happen) is going to depend on the global accord that will let them do so. We cant compare their potential status there to theirs in Jordan today as in the former case they are supposed to return home and in the latter they are refugee.
No, Emir Faisal did not consider Palestinians to be Arabs at all, nor anyone living to the west of the Red sea, too boot. His descendents would later claim parts of Palestine as part of Jordan, that much is true.
What makes you think so? The root of all problems the Palestinians have today is the fact that they have no state, or more importantly that they cannot find a solution acceptable by all parties (that being said, the problem is exactly the same for Israeli, only difference is that one can decently live with the statusquo and not the other). If an acceptable solution could be found, I think a viable state can exist there. It wont be Switzerland, and it is likely hatred will last for many years between neighbours but at the end it may work. In all cases, we dont really have any better alternative, do we?
The root of all problems is that the institution (namely, Israel) capable of taking charge of the situation have been rendered powerless under international consensus. Every Palestinian faction (I include the Jewish settlers as one for the sake of simplicity, alongside the PLO and Hamas) is armed to the teeth and will fight to the death with each other. Not really a recipe for a healthy state. It is not really true Somalia is completely anarchistic: Rather, the government struggles with organisations that seek governmental control over Somalia. It will be also the case in any conceivable Palestinian state.
And let's face it: The settlers cannot be removed from West Bank without triggering a civil war. While their presence is formally illegal, it is rarely mentioned that Palestinians who voluntarily relinquish territory are punishable by death. The west nevertheless buys the logic of the Arab states due to its economic ties, though from a dispassionate perspective, you will have to admit there settlements are a fait accompli.