Not exactly correct.
If you are looking historically what we call the original peoples of that area, 'The Palestinians', were constituted in part of the Jews. The Jews are an original Palestinian people
That is why the Arab's, who came later want NEITHER a Jewish State or a Palestinian State in their midst. The only thing the Arab Nations hate more than a Jewish State in their midst is BOTH a Jewish and Palestine one.
THat is why the Arab nations have backed the two fighting one another for over 50 years now, since the Khartoum Summit when they Arab nations wrote they would weaponize the Palestinians DESIRE for a homeland against Israel.
that is also why Israel, or no one else can negotiate a peace, in good faith with any Palestinian leadership as the Arab nations just funnel in billions of dollars to groups who will disrupt it. That is why Yasser Arafat dies with over a Billion dollars, despite living a relatively poor life, from the outside. As Arb's bribed him to kill the deal, Bill Clinton had Israel agreed to.
The Arab nations know the day after a State of Palestine is created it would have no legitimate reason to then fight Israel for any land as they BOTH would have land. That Palestine State though would have plenty of reasons (Oil) to immediately start fighting Arab nations to give up occupied lands, as Arab nations sit on more contested Palestinian land, than Israel does, and much of that land has oil.