"...even Ben-Gurion's first comment seems premised on the idea that Palestinians can be excluded from the Israeli state somehow..."
Speaking of revisionism...
If that was their intent, they failed. Not only do a million Arabs live peacefully as Israeli citizens, they are represented in the Knesset, and they have both rights and prosperity that are not available to Muslim residents of the surrounding nations.
Of course, excluding "Palestinians" was never their intent -- as the prosperity of Muslim Israelis demonstrates amply.