Ok Guys. All of you have made legitimate points.
However, when Israel was created in 1948 from Palestine it was also, I believe a Brittish Territory at the time. Just as were the majority (if not all) of todays modern Arab countries.
The only other large population of a people besides the Palestinians without their own state are the Kurds. The Palestinians will have their own state one day. And the next crisis in the mideast just may likely be about the Kurds.
I don't agree with Israel making settlements in the occupied territories, but I believe that Israel was attacked and also the fact that there were no Arab countries that would (even now) recognize Israels right to exist. In fact, many want Israel to disappear entirely...so they say.
If one thinks about that one could understand their mistrust and defense of their historically oppressed people.