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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.
There's more than 2 ways to get Israeli citizenship.
Both of those fall under the "right of return" for Jews.
Non-Jews with permanent residency can become citizens after 3 years if they give up their previous citizenship. Meanwhile, Jews are allowed to be dual citizens. For example, some Druze in the Golan Heights became Israeli citizens that way, particularly due to the Syrian Civil War.
Also, in 1952, Israel passed a citizenship law that gave citizenship to anyone who had been a national of the British mandate in 1948, had registered as an Israeli resident in 1949, and hadn't left Israel before claiming citizenship. So about 170k Arabs were granted citizenship, while the ~720k who fled or were expelled during the war were excluded, although they expanded eligibility a bit in 1980 to include Arabs who had returned to Israel after the war.
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.
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.
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"
Hey fella: they "showed up" from where, and why?
Have any other questions?
Why should the people in the Middle East suffer because of what nazi Germany did?
It's not just the Nazis - it's the entire west.
There were always Jewish people in the area who were often treated as second class citizens by a Muslim majority, btw.
When the west promised Israel to the Jewish people around the globe and the population already living there, many other Arab/Muslim countries were also already gladly exiling their Jewish population as well.
It wasn't "just the west".
With the promise of a state and Zionism as a religious driver they stomped the people already living there, although these people were simultaneously promised their own state called Palestine.