Is it wrong and racist that Israel doesnt allow Palestinians whose family has lived in the area for hundreds of years to live in Israel but allow any Jews from around the world ?

Yes. It’s inhumane and against international law too.
1) The Right of Return in International Law:* All refugees have a right to return to areas from which they have fled or were forced, to receive compensation for damages, and to either regain their properties or receive compensation and support for voluntary resettlement. This right derives from a number of legal sources, including customary international law, international humanitarian law governing rights of civilians during war, and human rights law. The United Nations’ Universal Declaration of Human Rights states in Article 13(2) that “[e]veryone has the right to leave any country, including his own, and return to his own country.” This is an individual right and cannot be unilaterally abrogated by third parties.* In December 1948, following Israel’s establishment and the attendant displacement of more than 750,000 Palestinians from areas that fell within its control, the UN General Assembly passed Resolution 194, which states:> “refugees wishing to return to their homes and live at peace with their neighbours should be permitted to do so at the earliest practicable date, and that compensation should be paid for the property of those choosing not to return and for loss of or damage to property which, under principles of international law or in equity, should be made good by the Governments or authorities responsible.”* The Palestinian right of return has been confirmed repeatedly by the UN General Assembly, including through Resolution 3236, which> “Reaffirms also the inalienable right of the Palestinians to return to their homes and property from which they have been displaced and uprooted, and calls for their return.”* The Palestinian right of return has also been recognized by major human rights organizations such as Amnesty International, which issued a policy statement on the subject in 2001. It concluded:> Amnesty International calls for Palestinians who fled or were expelled from Israel, the West Bank or Gaza Strip, along with those of their descendants who have maintained genuine links with the area, to be able to exercise their right to return. Palestinians who were expelled from what is now Israel, and then from the West Bank or Gaza Strip, may be able to show that they have genuine links to both places. If so, they should be free to choose between returning to Israel, the West Bank or Gaza Strip. ‘Palestinians who have genuine links to Israel, the West Bank or Gaza Strip, but who are currently living in other host states, may also have genuine links to their host state. This should not diminish or reduce their right to return to Israel, the West Bank or Gaza Strip.https://www.amnesty.org/en/latest/news/2019/05/israels-refusal-to-grant-palestinian-refugees-right-to-return-has-fuelled-seven-decades-of-suffering/* According to a statement issued by Human Rights Watch in 2000:> HRW urges Israel to recognize the right to return for those Palestinians, and their descendants, who fled from territory that is now within t