Firstly:
Okay now for the post.
When Palestine is liberated, I think the vast majority of settlers will either be [redacted] or forced out of the region. There is no way that any Arab in the region will accept having a settler in their land, and the settlers know this. The plan will have to be a mass exodus for the west, both for their safety and livelihood (I can see many going into ghoul industries like defense, tech, and police training).
That being said, how would you react if your country decides to accept settlers? Would you support the move? If they were going to live in your community/ neighborhoods how would you feel?
They should all be deported by Germany. This is not based on any practical or reasonable principle. It is just the funniest outcome.
Give them Bavaria as a consolation prize.
I'd like to give them Alsace-Lorraine. The French and German ruling class has been slaughtering each other's working-class soldiers for centuries over that miserable little patch of land. Making it a three-way fight would be hilarious.