"Based on numbers of Jews, the true historic, economic & demographic centre of the Jewish people was in Central Europe, arguably in or not far from Germany.....hence a reasonable Jewish homeland was right where most of them lived anyway."
Unlike most other ethnic groups on the continent, the Jews did not live in a single region -- they were scattered in many towns and cities throughout Europe, so determining a "homeland" would have been virtually impossible. Furthermore, there were infinitely more Jews in Eastern European territories occupied by the Nazis in WWII than in Germany itself. Also, such a plan would have displaced even more innocent people than was already the case at that time (Central Europe isn't known for its vast, empty spaces). Finally, when the war was over and the Jews were restored their civil rights, there was simply no need for a separate Jewish homeland in Europe, which the Jews would probably have never accepted anyway (Israel was a different, much older, and territorially-based concept).