The Pals aren't full citizens, though, are they? So why should they enjoy the benefits of full citizens? We do the same thing with temporary visas. I'll agree, it causes a lot of trouble to not grant people full citizenship, just take a look at France.
This thing you keep harping on, about them not being democracies. That doesn't matter in the least. The people in those particular theocratic dictatorships choose that form of government because they believe the Koran mandates it.
Citizenship is the problem. Palestinians don't have any.
What evidence do you have the Egyptians choose to be subjugated by a dictatorship? Or in Syria? Or in Saudi Arabia?