See the first Rashi on Chumash. Hashem created the world, and gave Eretz Yisroel to the Jewish people. It’s not morally problematic to not allow non Jews to govern.
Of course, if you hold that the shalosh shavuos are binding, it’s wrong for us to govern Eretz Yisroel altogether until Moshiach comes, no difference one state or two.