There is a Palestinian state. It's called Jordan, which is 65% Palestinian, about 1/3 Bedouin and ruled as a family business with a flag by an Arabian Hashemite family put there by the British. Israel occupies 22% of mandatory Palestine's territory, having accepted this % offered by the UN partition plan that all Arab countries rejected. Five Arab armies, assisted by British military advisors, invaded and were defeated, creating an "Arab" (not Palestinian) refugee problem since Syria, Iraq, Egypt, Lebanon and Jordan all refused to give them citizenship and work permits. At the time the term "Palestinian " referred to Jews living in mandatory Palestine. Arafat's right hand man, Zahir Muhsein, spoke openly about why the PLO invented a separate Palestinian nationality in a 1977 interview with the Dutch newspaper De Trouw. Read it and learn.