I see that nobody here has stated their age. It may be, that none of you is familiar with the origins of the modern State of Israel, nor of the repeated attempts by its Arab neighbors to push all the Jews into the sea. There was no "Palestinian people" until the PLO charter was enacted in 1964 by Yassir Arafat, an agent of Egyptian Intelligence. Before that time, references to "Palestinians" were all to the Jews living there. The Arabs in the land are simply Arabs, not a separate ethnic group; and they well know it. Until the Jews began to arrive in large numbers, drain the swamps and irrigate the land, the place was nearly deserted save for some wandering Bedouins and multi-ethnic cities. Jews have been a plurality in Jerusalem for hundreds of years.
The Jews were expelled from their land by the Romans, who were true "occupiers". Since that time, many other imperialist powers have overrun the land: The Greeks, the Arabs, the Turks and others. Finally, the British were given authority by the League of Nations to explicitly create a Jewish Homeland in the land. This mandate was continued under UN auspices after WWII, until the British abdicated their responsibilities in 1948.
The Arabs, who had staged several massacres of Jews under the British, began to attack in large numbers as the UK troops debarked. In the meantime, the US imposed an arms embargo, forbidding the arming of the Jews. The neighboring Arab states were under no such restriction; the Jordanian army, in fact, was led by British officers. The Jews, meanwhile, smuggled in arms from the Soviet Union and Czechoslovakia, mostly mis-matched small arms.
When the British left, all the Arab neighbors attacked in force, by land, sea and air: Egypt, Transjordan, Syria, Lebanon and Iraq formed the largest contingents. A series of cease-fires were declared, with no regognized demarcation of borders. Finally, in 1967, Israel defeated all the Arab forces and occupied land from the Suez Canal to the Golan Heights. Under UN Resolution 242, they retuned the Sinai to Egypt (under the condition that the area remain demilitarized); and they made a final border settlement with Jordan, making official the reality that the eastern frontier lie along the Jordan River, the Dead Sea and the Arabah. The northern frontiers continue to be UN-recognized cease-fire lines.
After the first Arab attack on Israel was unleased, Jews were driven from Arab countries by the hundreds of thousands. Most of these went to Israel, where they became the plurality. In effect, there has been a people exchange: Jews fleeing Arab lands, and Arabs fleeing Israel. The numbers on both sides were roughly equal. This is very similar to the exchanges that happened between the Turks and Greeks after WWI, between the Russians, Germans and Poles after WWII and between India, Pakistan and Bangladesh after independence from the British. Of all such exchanges, only the exchange involving Israel remains a subject of intense international attention. There is no rational reason for this.