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Tl;dr Israel showed up and kicked Palestinians out, Palestinians want their land back. Ensue 80 years of complications
Also Israel has two means of aquiring citizenship. First is having Jewish ancestry. The second and more problematic is that anyone who converts to Judaism can apply in a slower process that grants them citizenship. People who aquire citizenship can then live there and gain govt benefits that subsidize living cost, in other words, govt sanctioned stealing of Palestinian homes/land. Thats why Palestinians say they often hear settlers with Brooklyn accents. People who live in places like NYC with high costs of living are basically given the option to have much cheaper housing if they convert and forget their morals about theft.
So basically Israel recruits citizens from groups of people who have financial incentives to move there and lack a sense of humanity to turn down "free stuff stolen from destitute opressed people" and thus you build a citizenry who is totally comfortable with this Apartheid/Genocidal bullshit.
It's even simpler
Israel showed up and kicked the Palestinians out, those either unable to or unwilling to leave are now being subject to ethnic cleansing.
Or even simpler: Israel's sole purpose is to exterminate Palestine.
Israel also wants to keep the support from the US so they are cleansing slow enough that the US won't care.
Like when Russia creates it's breakaway regions as an excuse to take a chunk out of a country. No one cares when they did it to Georgia or when they are doing it to Moldova but with Ukraine they became too visible and got a pretty big backlash. The trick is to not do crimes too visibly.
And there wasn't a place called the United States of America until 1776?
Because Israel took over more land that was fully inhabited by the Palestinians (for the second time)
Assuming you're arguing in good faith, which is a huge assumption, the answer comes down to negotiating power. Egypt was able to get the entire Sinai peninsula back during these negotiations. Israel never fully gave up the Gaza strip, hence the second part of my tl;dr above: "Palestinians want their land back. Ensue 80 years of complications"
Technically it wasn't so much Israel as Europe (and the US) but the Zionists definitely made their mark.
Europe (Britain mostly) and the US pushed the newly formed UN to pass a resolution calling for the creation of Israel in 56% of the territory, but the zionist militias actually took almost 75% of the land while destroying entire villages and murdering the existing population. The West continued to support them after that and have been tacitly approving of them taking even more of the land as the decades have gone by. The West is not blameless, but it was very much Israel that did it.