Why did God make Canaan the Promised Land for the Israelites ?

The idea that God’s covenant with Abraham can be used as a religious justification for the usurpation of Palestinian land and ethnic cleansing of its people is not an argument that can be accepted on religious grounds – where commentators have pointed out there is nothing in the promise to indicate God intended it be applied to Abraham’s physical descendants unconditionally, exclusively (to nobody but these descendants), exhaustively (to all of them) or in perpetuity, putting aside the question of defining who exactly these physical descendants even are, given the related ancestry of Palestinian people today to those same descendants of Abraham.
Nor is it one that can be accepted on moral grounds, where the idea that God covenant provides justification to establish a nation that enshrines the supremacy of one racial group over every other, is clearly a racist interpretation of religion and should be vehemently rejected by all people.
The real question which begs to be asked is this:

Is it possible that at one point in history, God made a racist promise?