At the expense of the Palestinians. I think the elves need a homeland, but I certainly don't want a repeat of Israel.
I think this Israel analogy is off-base. For one, a previous poster said that Jews were displaced by a purge and that is [mostly] wrong. While the Holocaust did displace a large Jewish population, it did not displace them from Israel but rather from European states into which they had integrated (I'd also like to point out that the formation of the modern Israeli state caused one of the largest refugee surges in modern times). Prior to modern Israel, there hadn't been an Israeli state for almost three thousand years. Israel was overtaken by military campaigns during a period of expansion by the large empires in the region, as were many smaller nations. The Dales, on the other hand, were conquered relatively recently and not through a normal campaign but one that targeted heathen elves specifically. Furthermore, I don't believe many Jews have lived a nomadic lifestyle for centuries. When they were the subject of discrimination that displaced them they typically settled somewhere else rather than resort to transience. This is more similar to the plight of Ferelden refugees in the Free Marches than it is to Alienage elves.
Although the Alienages parallel European Jewish slums, the difference between that and the elves is that the elves were conquered by Andrastrian nations and subsequently forced into slums. Israel, on the other hand, was defeated, its citizens absorbed, and for the most part conquered Jews were treated well by their conquerors. In fact, the Roman Empire even made an exception for Jews to its policy of conversion to the Roman religion, it's part of the reason why Christianity was seen as such a threat. Anyway, it wasn't until the rise of Catholicism and the Holy Roman Empire that prejudice against Jews started to manifest in official action. Jewish slums were a result of systemic discrimination by a society into which the Jewish population was already integrated, whereas elves were conquered and then shepherded right into slums. If anything, I think the Alienages more closely parallel black slums and projects in America than European Jewish slums.
I'd also like to point out how the elves parallel Palestinians in some ways. For one, the elven religion is looked upon as strange by Andrastrians, even to the point where such misunderstanding caused violence against elves. This is similar to a lot of the false rumors that were spread about Jews under Christian occupation and in the centuries that followed, but it also parallels modern misconceptions about Islam and prejudice towards Muslims. The Alienages themselves parallel the West Bank insofar as West Bank residents are walled in and have their travel controlled by Israel, somewhat similar to elves being forced into Alienages. The West Bank's commerce also suffers from Israeli occupation, similar to elves having to scrape by simply by being denied the means for true subsistence. Also, the recent military actions have been blamed, in part, on the kidnapping of three Israeli teenagers supposedly by Hamas, but it has come out after the fact that it was actually a small group of rogue extremists acting on their own. This also parallels the Dales, as kidnappings of humans was used as a justification in attacking the Dales, even though it was suspected that the elves might not have been at fault.
While there are some similarities between Elves and Jews, it's not a perfect analogy. I don't think Bioware intended to say that Elves are Jews and any sympathy for Elves should serve as a parallel to Zionism. I think, rather, that the Elves are a pastiche of many of the injustices visited upon various peoples in the real world, and that the message that should be imparted is not to support this or that political agenda, but rather to be cognizant of such injustices and think about the systemic causes of such ongoing injustice.
I'm also gonna say, I find much of the European support for Zionism to have been patently hypocritical. "We simply can't have you in our society without discriminating against you so we have to give you your own state, it's the only solution. Oh, and by the way, we're not going to sacrifice our own territory to ensure you have a homeland, we're going to go to a different region and create a homeland there whether the residents like it or not." That's sort of how I view these proposals to have the Elves settle somewhere way from most of the residents of Thedas. It's not really addressing the issue of prejudice, it's simply moving the embattled group away from the prejudiced population. Out of sight out of mind, right?