First of all, Ashkenazim make up about a half of the Israeli Jewish population, not “most” of it.
Second, yes, due to very unfortunate historical circumstances, the Jews (including Ashkenazis) lived long time in exile (“galut”), away from the Land of Israel. And nevertheless, they preserved their national identity and the link to the Land of Israel as an integral and one of central parts of this identity. And every year they recited “next year in Jerusalem”, and repeated the passage “if I forget thee Jerusalem…” and mourned on the 9th of Av the loss of the Temple and the homeland.
But if you say that the life in exile invalidates the connection of a people with their lost homeland, try to explain your theory to those people - born and bred in, say, London or Toronto - who call themselves Palestinians and demand the right of return to Palestine.
I trust you understand the difference between the origin of the human species and the national identity and the national homeland (one and only) of a specific nation.
Besides, the Jews did not come to expel anyone. The expulsion was a result of the war that the Jews did not want and did not start.
Offering the Jews a solution that would abolish their independence (again!) is not a legitimate attempt at peace either. The question is why only the Arabs are allowed to reject unacceptable offers.
The occupied territories are not the state of Israel (even by the Israeli laws).
Second, all Israeli citizens, including the Arabs, enjoy the same civil and democratic rights with all the benefits of citizenship.
There is obviously some inter-ethnic tension, but where is there none? It is safe to say though that the Israeli Palestinians are in a much better shape in terms of civil rights, political freedoms and democracy than the Palestinians (or Arabs in general) living in the Arab countries.