To me, it seems like the obvious solution.
However, to get a secular Palestinian state, you'd need to butterfly Zionism, the Holocaust, and the Grand Mufti of Jerusalem declaring jihad against the Jews, have the British Foreign Ministry to give more of a shit about the long-term political consequences of cutting the mandate loose in 1948, and no superpowers around to hand one side or the other ample weaponry to continue fighting down the line.
So you'd need a complete re-write of ME history from WWI on.
IMO the Ottomans remaining in power and having their own Meiji after WWI might have allowed it to happen. YMMDV on that tho...