Israels declaration of certain open, uncultivated areas near the 1949 Armistice Line as state land has been widely mischaracterized as an appropriation of private Palestinian land, and a promotion of settlement activity. It is neither.
A determination that land is state land is a factual, administrative finding that does not change the ownership of land. In the West Banklike in the American Westmassive amounts of land have no private owners. There is nothing unusual about this; indeed, it is even truer inside the Green Line. Moreover, if Israel is indeed an occupying power, it has a duty to administer and maintain the rule of law, and oversee public resources, both of which require the authorities to know what land has private owners and what does not.
An appropriation involves taking something that is someones. A designation of land as state land requires a determination, based on extensive investigation, that it does not have a private owner. The determination can be challenged administratively and judicially, as Palestinian claimants often do, and sometimes prevail.
In other words, nothing has been taken from anyone, or given to anyone. Thus a state land determination does not create any new facts or change ownership.