That is what the Palestinians have convinced the world. But this is not necessarily the case at all. Consider the following:
There are already many Arab Muslim states in existence. The Arabs who call themselves Palestinians share both history and culture with people in these states — Jordan, Lebanon, Syria, Saudi Arabia, etc.
The Arabs who call themselves Palestinians only began to identify as a separate people in response to the formation of the state of Israel. This new identity was politically motivated, not the result of a long history as a people with an indigenous desire for self determination.
The desire to eliminate Israel is stronger for the Palestinians than the desire to have a state. Certainly they could have had one in 2000, but opted for violence instead.
The Palestinian culture is based on hatred and veneration of death via Jihad. It is not a culture intent on development. Why does such a culture merit a state? Why does the world need such a state, which would be a center for terrorism?
It is time to consider other paradigms for handling the situation.