Actually, my father, who was born in Hebron, had a Palestine Passport until the State of Israel was created. He is a Jew and is now, of course, an Israeli. The Palestinian Arabs want to create their own State and this began in the 1960's. Israel has said it wants this (the two-state solution) but this will only happen when the Palestinian Arabs embrace non-violence and negotiations as the path.
Palestinians, IDF clash in Jalazone after funeral of teen killed by IDF on Friday (Haaretz)