The day there is a restoration of democracy in Iran, those 2 will have normal relations again.
It will also require a restoration of secular democracy in Israel.
Depends on what you mean by a "secular democracy". In Israel, every citizen - Jew & Gentile - is equal under the law. It's not like any of its Arab neighbors, which have one set of laws for muslims and another for everyone else. Yeah, it's true that Israel has a law that allows any Jew from anywhere in the world to migrate there, but the insinuation that in Israel, institutional discrimination against muslims, Christians and others exist is just a canard thrown at Israel
There are some 20 countries in the world that are officially Christian: nobody has a problem w/ that. There are some 23 countries that officially have islam as their state religion, including codified discrimination against non-muslims: nobody has a problem w/ that. Somehow, the world's one Jewish country is the one expected to be secular
So what would you suggest for Palestinian people? Where should they go, and what should be done with the land that they have vacated?
For starters, there is no real entity called the "Palestinian" people. Before Israel's creation in 1948, they were simply known as Arabs. In fact, in the 1920s and 30s, when the area was under British rule, the term "Palestinian" explicitly and exclusively meant "Jews". They let go of that label once Israel was created, but until 1964, the Arabs of the area were simply known as Arabs, not Palestinians
It was in 1964 that the Soviets came up w/ that brainwave to rebrand the Arabs of the area as "Palestinians". Prior to that, world sympathy was usually w/ Israel and the Jews, b'cos looking at a map, it looked like an empire from Mauritania to Iraq and Somalia to Syria pitted against a country almost the size of a dot. The Arabs looked like Goliath and Israel like a David. So the Soviets suggested flipping the script to make it an Israel vs "Palestinian" issue, and in history, it's the most successful rebranding exercise ever pulled off. Greater than what any Fortune 500 company ever achieved
Even during the eras when muslims i.e. either Arabs or Turks ruled, there was no such province as "Palestine". During the caliphate, the entire region west of the Euphrates was known as "Syria" or "ash Sham" to the Arabs: that was their definition of Syria. There was no Jordan, Palestine, Lebanon: it was all Syria, headquartered at Damascus. There were local Jews who lived there throughout the centuries as dhimmis, or second class citizens (exactly what you accuse Israel of doing to Gentiles), and in the 1920s, there were Jews who moved there and bought real estate at inflated prices to settle down. Just like when naturalized Americans buy property and can legally call it their home, same thing applied to those people then. There is no legal basis by which those Jews who fled from Europe either before or after WWII didn't have a right to be there
Finally, Israel never expelled anybody: they have a muslim minority that are usually loyal citizens, although there have been exceptions due to the jihad ideology. In 1948, it was the Arab leaders of Transjordan, Syria and Egypt who urged Arab citizens in Israel to move out, promising them that they'd return once Israel was destroyed. Of course, Israel never got destroyed, so those Arab citizens were SOL, and to make things worse, none of those countries gave them citizenship. But the international law regarding refugees is pretty clear: it applies only to the people who originally fled a country, not to their descendants. Today, we have the grandchildren and great-grandkids of those refugees: Israel is under no legal or moral obligation to resettle them. They should get the citizenships of the various Arab countries they live in. Judea and Samaria belong to Israel: in war, when territory is lost, it changes hands. Or are you willing to petition Vladimir Putin - a major backer of the Palis - to return Kaliningrad to Germany, and Lukashenko to restore Polish territory in Belarus to Poland?