Jews stopped being 'indigenous' to Israel many, many centuries ago.  Likud's stated claim in the area is not based on that, it's based claiming the widest possible area that historical Israel ever held - land Likud believes was given to jews by god.  Relations between countries and peoples  - International law - simply can't be based on a promise from God.

While Palestine had never been a state, or a national entity, the arabs that lived there in 1948, had ancestors living there for many centuries.  The struggle with Israelis has forged their identity as a nation.