You are confusing the issues here:
The question is not whether the existence of a Jewish state matter for us (Jews). The point is we have almost lost the propaganda war with the Arabs.
In our times, the loss of propaganda eventually war leads to loss of war, and the loss of Israel.
We need to win the propaganda war on three fronts in following order:
1. With the Jews (inside and outside of Israel)
2. With the third party (the non-Muslim world)
3. With our enemy (The Muslim world).

1. Jews need to understand that our enemies are only going to accept us if we are strong, the stronger, the more they will accept us.
2. The third party needs to be at least neutral, stop using Arab terms such as “Israeli occupied West Bank” and start using neutral terms such as “Disputed territories”. Preferably use historical terms such as Judea and Samaria, and “Land of Israel” rather than “Palestine”.
Loss of propaganda with 3-rd party countries leads to economical and political ruin, which will lead among other things to mass emigration from Israel.
3. To win the war with Arabs, we need to speak their language: They know that “Might is Right”, they respect MIGHT. They believe that Muhammad is true prophet because he won the overwhelming military victories. Respond to all Arab provocations with strength, and they will respect us, however this is only possible after point 1. and point 2. are accomplished.

I have seen different sources regarding the number of Pals.
I believe there was a huge immigration due to the influx of Jewish capital which made it possible for Arabs to earn 10 times more then in Egypt and 20 times more than in Iraq.
Secondly I recall reading that many of today’s so called Pal-refugees are descendants of poor Arabs from surrounding countries (Lebanon, Egypt, etc) who infiltrated the refugee camps in order to get the welfare.)
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The most important secular claim is not how long Jews have been in the Land of Israel. The claim should be that Arabs have plenty of place where they can be Arabs live Arab live, have Arab religion, language, customs, food, music, tradition all of that. That Pals are not significantly different from the other Arabs. That moving from Israel to Jordan or Syria, is like moving between two counties in California: for example from Mendocino county to Humboldt county. In the worst case it is like moving from California to Oregon.
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The secular argument is therefor that for the benefit of humanity as whole, it is better to have a Jewish state then a Palestinian state. That Jews have sincere national aspiration which they have proven. Palestinians, if given opportunity would be more than happy to live in other places. They just need a decent living condition.
From humanistic perspective a loss of Israel as Jewish country is a HUGE loss to all humanity.
A loss of the fantasy of some non-existent “Palestinian State” is no loss at all.

Winning the propaganda war is important for Israel, and most people in the world is totally uninterested in Jewish religious argument (except for a section of Christians). Most people would resonate with a variation of argument that I provided above. I myself don’t at all resonate with the religious argument, never the less, I support Israel’s existence on all of Land of Israel with my whole heart.

Secondly, the majority of the ancestors of the current “Palestinian” Arabs have come to the Land of Israel very shortly before the establishment of the state of Israel. (Between 1 and 50 years.)
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The analogy with mosquito’s is very accurate.