Ryan: my post was intended partly as some historical clarification over borders, and partly to show that the the situation, from the beginning, has been created and perpetuated by both sides and not solely Israel. Before 1948, the term ‘Palestinian’ did not exist. The people who are now Palestinians were mainly Arabs living in the land of Palestine. Whether it was forced expulsion, a personal choice or whether they were incited to flee by surrounding Arab countries (and there is evidence for all three) - they left. The one’s that stayed became part of Israel’s Arab citizenry, the ones that left for other countries got stuck in between because none of the Arab countries would grant them citizenship (see my above post). This was a deliberate act (again, see above).
Bear in mind that the US was not particularly involved at this point.
Also, reasons for the rapid establishment of the State of Israel (1948, very soon after the UN Partition Plan) are likely to be rooted in WW2 - the British would not allow refugees from the concentration camps to enter Israel. This was a very important issue for the Jewish community in Israel at the time, and they went ahead even though the infrastructure etc for an independent country wasn’t actually in place. As soon as independence was declared (for an Israel that had the borders specified by the UN) the Arabs attacked (literally, the very next day, and in violation of the UN). Until some time in 1949 there was war (and it really WAS a war of existence). In all that, I guess it’s not surprising that a Palestinian state never got formed. I’m not well-versed enough in the history of the region and political analysis to pinpoint times where it could have happened. The PLO seemed to be a step in the right direction, at the time.
As for the current situation - I am not as informed as I would like to be (working on that), so I don’t want to make any definite comment. However, I don’t necessarily agree with everything the Israeli government does (or the NZ government for that matter).

