No argument with your last sentence. However, among the Canaanite's were the Jews.
And there is no proof of this, since neither the Hittites, or the Assyrians nor the Egyptians ever mentioned the term Jew or Israel before 1200 BC.
There is also no archeological proof - that would have unearthed evidence that people from Canaanite were living in Egypt a mass. The only thing that is known, is that it was common for the victors e.g. Egypt to bring in prisoners or slaves from those it had defeated at times - e.g. Hittites and Assyrians. The same happened vice versa.
It is simply the self written Bible that construes this idea of Canaanites having been non Monotheistic Jews - who upon enslavement in Egypt (coming up with the Moses story) were told by God to return to the promised land. Ignoring the fact that a multi-ethnic population in Canaan had been living their own lives and culture since around 3000BC. in that so called promised land.
It was the
Hyksos (settling and coming into Egypt from today's Palestine) it is assumed that they were a nomadic people having migrated from today's Iran/Afghanistan, that conquered the northern part of Egypt in around 1800BC. It is even feasible to conclude that those who destroyed Jericho (archeological evidence of such an occurrence is dated at around 2200 BC) were Hyksos. Therefore it is obvious that the Hyksos were already established in Palestine -
600 years before this Moses bible story takes place. And were kicked out or assimilated by the New Kingdom of Egypt lasting from around 1550BC to 1050BC. Therefore a mutual exchange between Egypt and Canaanite culture, arts and customs, incl. some Deities certainly took place. The monumental stone, erected in Beth Shean by Pharaoh Seti I (1290-1279 BC), was designed to immortalize an Egyptian victory over Canaanite forces and logically doesn't mention Jew or Israel.
Therefore the question even arises if the Hyksos might have been the actual forerunners of the Israelite's - if so, they would have been foreign conquerors and not an original tribe originating form Gods promised land.
The statue of Ramses III (r. 1186-1155 BCE) which was discovered at Beth Shean also mentions no Jew or Israel.
AFAIK the oldest Egyptian artifact found in Canaan is that of a sphinx, with the name of the Pharaoh Menkaure (2530 BCE) carved between the paws.
Most of the material culture that was found in Beth Shean was Egyptian, but the use of local pottery vessels for cooking and baking suggest that only Egyptian men lived in Canaan, while local Canaanite women served them, as wives or slaves.
Therefore another Thesis could be that this Moses story which never took place at all - certainly not in Egypt, but in Egyptian controlled Canaan itself - where Egyptians and local followers of Akhenaton's Monotheistic beliefs rebelled against Egyptians and others living in Canaan - trying to establish their own kingdom with their own "true" belief. As such the latter Israelite's would be a multi-ethnic mixture of Egyptians, Hettie's, Hyksos and what ever else settled in the area (Canaan) for 2000 years, before this uprising took place.
This rebellion was likely enabled due to the retreat or abandoning of Canaan by Egyptians upon Akhenaton's disastrous military campaign against the Hettie's.
So to state that Israelite's or Jews were Canaanites wouldn't meet the facts (Since Canaan was far more a multi-ethnic society using the geographical description Canaan), then a single race or ethnicity - and again this is were this self written Bible comes into play - to lay an everlasting territorial claim, exclusively for the followers of the Hebrew religion. Who had been defeated by the Egyptians within 50-100 years upon having taken over parts of Canaan.
As such today's Palestinians have the same ethnic multi-cultural background as Jews - having lived in that area for 5000 years and more.
As for today's Israel - it was an idiotic and totally unfeasible idea by the Brits and Zionists - to regard Palestine as becoming or being a homeland for Hebrews. especially if one takes into account that the population of Palestine in 1900 (around 450,000) beheld less then 3% of Jews. The by far largest population of Jews was at the time actually in Baghdad with Jews making up 20% of it's population. Additionally choosing to ignore the rise of Arab nationalism - who's goal/vision was to reestablish a former Harun Al Rashid or Saladin Caliphate - in the previous Ottoman controlled regions of today's Syria, Lebanon, Jordan, Palestine and Iraq.
The issue that made a Jewish homeland feasible (totally unforeseeable in 1916/17) was the upcoming of a guy called Hitler and therefore WWII including the Jewish Holocaust.
Certain Jews were well aware that the UN planed and designed Jewish territory - would be impossible to thrive, so extremists made sure that Palestinians would leave due to the fear of being slaughtered by Jews. That Palestinian extremists in return attacked Jewish settlements is also known.
Since both sides are reluctant towards a fair compromise - this hatred (by radical and conservative factions on both sides) IMO is rather going to increase then subside.
If a peaceful and fair agreement can't be implemented - it is only a matter of time IMO - that radical Muslims countries or fanatic groups like IS or presently Iran are going to use their ideas and means of utter destruction to solve that issue, solely in their fanatic interests.