Do you think we should do the same here in America? Dissolve the US into one democratic state with Native Americans and non-natives alike? Are you willing to return your home to its rightful native owners? I assume that's okay since you probably have a passport.
Native American's should absolutely have the same rights as non-natives, which they do currently. The US/Canada did genocide the native american's, it's just it happened over a longer period of time and much further back in history. Obviously you're making a false dilemma fallacy when saying that you must return your house to native's who lived on the land hundreds of years ago. You wouldn't say that to European Israeli's who came to Israel/Palestine when they claimed it to be their homeland and thus lead to the Nakba.
You should always be acknowledging atrocities when they've happened - Trail of tears etc. You should take correction actions to ensure they don't happen again - proper education. You should also have ways to repay or reintegrate those people into the current society as it stands. The current belief of the Israeli government to commit genocidal actions, not correct any of their past wrong doings, and have different legal systems for two groups of people is something that any rational person can see as being wrong. If the idea is that well Palestinians are just going to kill the Israeli's if they become equal, then what's the point of maintaining any sort of peace with them? Just kill them all. But that's not an actual position that anyone would say because it would be insane.
Think of it this way - would you support this happening
1) China decides that it wants to support a Native American tribe within Buffalo and the surrounding areas. This land is the ancestral land of the tribe.
2) China funds this new state with billions of dollars and allows it to have nukes.
3) This new state forcibly removes any non-native americans from their homes to make way for natives to have.
The US essentially operates Israel as a client state. That's fine. But to maintain proper governance you can't have the crazies doing crazy shit.