In a fight we all know who would come off victorious despite incurring some casualties, and that is not because of superior firepower. In 1948 Israel, poorly equipped without any sophisticated weaponry and a fledgling army repelled the invading modern sophisticated arab armies that were coming to commit genocide against the Jews. Israel doesn't need superior firepower, it fights with the knowledge that it can not afford to lose a single strategic battle. The Palestinians on the other hand have never been a free people and there is no shortage of Arab lands. Before 1967 the Palestinians were under Egyptian occupation in Gaza or Jordanian occupation in Judea and Samaria.
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Preliminary report: Shooting attack in East Jerusalem's Damascus Gate (Haaretz)
from the article: Vice Premier: No chance of peace with Palestinians in near future