About the verse 7:162 - The wrongdoers among them substituted another saying - is probably this one from Deuteronomy in Torah:
As for the towns of these peoples that the Lord your God is giving you as an inheritance, you must not let anything that breathes remain alive. You shall annihilate them - the Hittites, and the Amorites, the Cannanites and the Perizzites, the Hivites and the Jebusites - just as the Lord your God has commanded, so that they may not teach you to do all the abhorrent things that they do for their gods, and you thus sin against the Lord your God. (Deuteronomy 20:16 - 18).
So, in the end, according to Quran, Jews have every right to come and live in the Holyland, but they were supposed to come in peace and humility, they possess neither of the two; they are unjust and lawbreakers, Justice needs to be done with them and the other people of the Palestine.