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As I understand it, the British government split the Chagos Islands out from Mauritius when the latter was granted independence.
So returning it seems a logical step. Personally, I'd give the Chagossians the right to choose how they want to move forward, but given the widespread dispersion of them in the intervening 60 years, I think allowing those who want to return to do so should be the priority.
Forgive my ignorance, but wouldn't handing sovereignty to the Chagossians themselves, rather than to Mauritius, have been the ideal here?
(but presumably, this wouldn't have kept the airbase for the US and UK, so was a non-starter in any negotiations)