A few minor quibbles...
1) The viability of a state in the Sinai Penninsula would be minimal so this would be a huge and unwelcome burden on the British, one they might not be able to supply for years, let alone willing.
2) Ergo if the state is not in part/all of the current state of Israel it can not survive. If it is then an Arab revolt, in Palestine and possibly elsewhere, is a foregone conclusion. So it isn't clear how the British benefit from this.
3) As Emperor Akhito correctly notes, this doesn't stop Hitler's murderous plans for Poles, Russians, Gypsies and many more. There is also a question of why millions of Jews will leave for such a poor territory if they aren't faced with the Holocaust.
4) How exactly do they all get there, over so many international borders in time of war, and why are the Germans so generous as to provide their enemies with several hundred thousand men of military age, plus scientists, mechanics, etc?
5) Those scientists went to the US to ensure that Hitler didn't get the bomb(first) and only the US had the resources to do that, so they don't change their location. The UK took part in the Manhattan Project yet didn't get the bomb until 1951 and British resources were/are vastly superior to Israel's so it isn't clear Israel gets the bomb much sooner, if sooner.
After all, Israel purchased/received its nuclear tech from the French and since this state certainly has much closer ties to the UK, if not being an actual member of the Commonwealth, the British are likely to be both less permissive and more alert to such a development. If London doesn't want Canada or Australia having the bomb...
Minchandre, more likely this successful population removal only whets Hitler's appetite and he tries to advance his plans for other groups so that doesn't go against the allies in the end. Also the resources involved were not that vast and probably amounted to less than ten divisions, less at any one time, and almost nothing in terms of air power, artillery, tanks, etc. Further, most of the killing didn't take place until after the US was in the war.