Killing the local pop ? Their were only 100k Arabs in the region at the 40s , they got 1200% bigger in numbers (1.2m) , not to forget that while Muslims ruled the region all none Muslims had to pay a special tax for not being Muslim(That includes Christians like you) and that their were and still are a lot more Jews then Muslims in Israeli territories.
And if you are going to say that shit about refugees , ill say 2 things :
1)They left at their own will because the Arab leaders of the time requested them to leave so they could reorganize and join the fighting , villages that didn't listened to that call weren't harmed and are now citizens of Israel.
2)In most of the world refugees get their own houses after a generation or two , only Palestinians are dumb enough to stay at their refugee camps for over 60 years.
P.S.
The Israeli government is definitely listening to Obama's shit to much , that so called "Mister president" \ "Leader of the free world" is failing to go out of his "Peace and love with the Muslims" illusions every time again and again , so you are current its like Israel is giving up a lot of its independence.