The country of "Palestine" does not legally exist. The name "Palestine" has been used on and off for several thousands of years for areas that include current Israel, Lebanon, Syria, Egypt and Jordan. The name Israel has been used continuously for over 3,000 years for parts of, and areas including all of the above current countries.
During the Roman period "Palestinians" could be Jews, Romans born in Roman Palestine and believe in the Roman Gods or other Arabs who were born in Roman Palestine and were of any number of religions.
During the Ottoman Empire there was no "Palestine".
When the British annexed (granted jurisdiction by the "League of Nations") that area after WW-1 they called it British Palestine and the inhabitants were Jews, Arabs of both Christian and Muslim faith and Europeans (mostly British) born in British Palestine.
Following WW-2 the UN divided British Palestine into two areas -- a small section for the Jews (both Palestinian Jews and other Jews that had migrated into British Palestine in the previous 50+ years) and a larger section for the Arabs (both Christian and Muslim). The Europeans powers had already divided up other areas into Lebanon, Jordan and Syria prior to the UN division.
When the division occurred and Israel was born, the surrounding Arab nations declared war on Israel and told the Arabs to leave their homes while the war was being fought and that they could return and take the Jewish land immediately after they "were kicked into the sea". Many left while a few remained. The Jews kept telling the Arabs that they should remain. Unfortunately for the Arab nations, the Israelis won the war and added extra territory to their own allocated area and the Palestinian Arabs found themselves without a land. The surrounding Arab nations refused to absorb the Palestinians.
What people call "Palestinians" are not people born in the former British Palestine, but Arabs born outside of the former Palestine and current Israel. They are people without a country.
If the Arabs really wanted to seek peace, then they should stop fighting and attacking Israel. It is the fanatics that are keeping the dispute alive and brainwashing the youth with lies and miss-truths about history. Israel is willing to give back some of the territory it has taken for the Arab Muslims to settle in peace.
Your statistics are well off. Arab attacks often kill more than 10 people in a single attack (car bombings, suicide bombings etc plus rocket attacks).
Sixty-Seven years of attacks upon the Jews by the Arabs has left a lot of distrust by the Jews. You must remember that it was the Nazi Germans who financed the "Grand Mufti of Jerusalem" to stir up dissent amongst the Arabs in 1934 and that fighting has been taking place between the two ever since.
A former TV news cameraman and jouyrnalist with over 30 years in the industry in Australia and Southeast Asia.
Currently a SE Asian historian.