In order to prevail, they either have to assert that there is such a thing as a general "right to return" or that Jews have property rights that Arabs don't. I can't see either assertion as being in Israel's long term interest. Acknowledging a right of return would seriously impact the Jewish nature of Israel. Conversely, making explicit the concept of Arabs having fewer rights in Israel makes more likely the possibility of Israel losing what little international support it has and puts in serious jeopardy its recent efforts to normalize relations with the Arab states.
You are correct up until the last sentence.
Israel actually needs little international support and what it does have is pretty solid.
Whilst ever Palestinian military activists carry on like the Benny Hill Show, israel will obtain legitimacy to defend itself more vigorously and make their expanded real estate goals a reality.
Bethlehem, here we come.