According to international law, the West Bank and Gaza Strip are "disputed territories", not "occupied territories". The difference is important, and is based on the fact that they became "terra nullus" at the end of the British Mandate. Had the Arabs agreed at that time to establish a Palestinian state, you would be right. Since their declared aim was to destroy the newly-established state of Israel, you're wrong. International law also allows for the acquisition of territory in a DEFENSIVE war. Jordan and Egypt occupied the West Bank and Gaza Strip ILLEGALLY from 1948 to 1967, because they were "acquired" in a war of AGGRESSION. The claim for Palestinian self-determination did not come until AFTER the 6-Day War. Prior to that, the Palestinian National Charter specifically waived all claims to the West Bank and Gaza (see the Palestinian National Charter of 1964: http://www.un.int/palestine/PLO/PNA2.html) Pay special attention to Article 24.
Judge orders Jerusalem Gay Pride attacker to undergo psychiatric evaluation (Haaretz)
from the article: IDF order will enable mass deportation from West Bank