You got a lot wrong about how Israel and Palestine were created. And it was Palestine which refused a two state solution several times. That's the sole reason why they are still not a state. Perhaps they want that now, after they saw that Israel will just continue to grow and snatch land from them. But at least Hamas will only accept if Israel is gone completely.

Israel and Palestine did not exist before and "Palestinian" was an ethnonational name for some of the Arabic people living there, mixed with all the other groups like Jews, other Arabic people like the Bedouins, some Christians, etc.

Since Arabic countries also exiled and killed Jews and of course World War 2, the British Empire thought it would be a good idea to create an official state for Jewish people. And the area (at that time called Transjordan) is the only place with native Jewish people. There were also growing conflicts already then, between Arabs and Jews (and Christians, but they were just moving away I guess).

To find a supposedly fair solution for both major groups in the area the British Empire in their infinite wisdom did what was totally hip at the time and tried to divide the land into to countries: Palestine and Israel.

But you had Arabs on one side who didn't want an influx of Jews to the area, they wanted all the land and have a Muslim state. And on the other hand you had more and more Jewish refugees and of course Zyonists coming there who wanted all the land and have a Jewish state.

At that time Palestine refused multiple times to agree to the two-state-solution out of greed. And Israel started stealing land out of greed.

Out of guilt and because there are really few Jews on earth the west equipped Israel with weapons to defend against the Arabic countries who didn't want them there. Israel flourished and some of the Arabic countries thought: how nice to have a rich neighbour in the area. And totally forgot about the not so rich neighbour which were the Palestinians, still hoping to somehow get a better deal for a country.