People in Westbank and Ghaza have a Palestinian passport. They elect a president and a parlament ( question -when will be the next election ?) Currently it is NOT about a Palestinian state, it is about full UN-membership about a Palestinian state. Palestinian state is partly controlled by IDF. The borders are undefined as are the borders of Israel. This can be either dissolved by negotiations or by war. Hamas, which won an absolute majority in latest elections to parliament, is for war, as the claim all land from Jordan to the sea.
from the article: Palestinians press Security Council members to back UN statehood bid