Two flaws in your analogy:
1) Hashem didn’t grant New York to the Native Americans. He did grant Eretz Yisroel to the Jewish people.
2) The Native Americans aren’t currently running New York. The Jews are currently running Eretz Yisroel.
Furthermore, even if the moral thing to do would be to give the Palestinians a state, it’s not practical. It would be suicidal. We’re dealing with a people which educates their children to hate and kill Jews.