Who Created the 1948 Refugees?

[abu afak]

And yet the Palestinians are still not allowed to return to their homes where their families lived for centuries. ....

"Even if Israel is not the cause of the Arab refugee problem, didn't they do anything to compensate those people?

As a goodwill gesture during the Lausanne negotiations in 1949, Israel offered to take back 100,000 Palestinian refugees prior to any discussion of the refugee question.
The Arab states, who had Refused even to negotiate face-to-face with the Israelis, turned down the offer because it implicitly recognized Israel's existence.

Despite this, on Humanitarian grounds Israel has since the 1950's allowed more than 50,000 refugees to return to Israel under a family reunification program, and between 1967 and 1993 allowed a further 75,000 to return to the West Bank or Gaza.
Since the beginning of the Oslo process Israel has allowed another 90,000 Palestinians to gain residence in PA-controlled territory.

Arabs who lost property in Israel are eligible to file for compensation from Israel's Custodian of Absentee Property. As of the end of 1993, a total of 14,692 claims had been filed, claims were settled with respect to more than 200,000 dunums of land, more than 10,000,000 NIS (New Israeli Sheckels) had been paid in compensation, and more than 54,000 dunums of Replacement Land had been given in compensation.
Israel has followed this generous policy despite the fact that not a single penny of compensation has ever been paid to any of the more than 500,000 Jewish refugees from Arab countries, who were forced by the Arab governments to abandon their homes, businesses and savings."

- Alexander Safian, PhD, CAMERA (The Committee for Accuracy in Middle East Reporting in America)
http://www.peacefaq.com/refugees.html​