Ayalon's facts are, more or less, correct from a certain point-of-view. Nevertheless, he ignores the central issue which is that the native inhabitants of these "territories" live there without any civil rights and that their land and water is taken by them to serve a "settler" population from without. If there were no people, Arabs, Palestinians, whatever, the he could quite easily dismiss the term "occupation." But "occupation" is more than a legal definition discusses in UN resolutions and Arab League declarations. It that was all it was, then who would care? "Occupation" is a condition under which human beings live in unjustifiable conditions and that is the principal issue.
World Jewish Congress: Nazi train treasures must go to rightful owners (Reuters)
from the article: The battlefield over Palestinian statehood moves to YouTube