Again, what lens are people looking through when he makes comments like "suggested relocating Palestinians...."? I personally take what he said as they need to go somewhere while the area is rebuilt, not that he wants to "kick them out" for good.
As for you last sentence, again if one was to take the most negative viewpoint, I would tend to agree with you. When I first read about this my first thought was what a great idea to rebuild it for the Palestinian people and to have our support to ensure there is no more violence in that area and everyone could live peacefully together. But maybe that is just me and my rose-colored glasses.