They are Arabs, just like the ones in Egypt, Lebanon, Syria, and Jordan. The "Palestinian People" were invented in order to give the Arabs an excuse to demand yet another (23rd) Arab state. The Jewish people, on the other hand, have only one state which was established in indefensible borders following the Arabs' attack. When the Arabs lost Judea and Samaria in 1967, Israel acquired them by right. To think that a country that wins territory in a defensive war should have to give back that territory is a corruption of basic morality. What the Arabs need to do now is work on giving their citizens basic rights and freedom and stop trying to destroy Israel. When they do that, peace will be achieved, and not before.
from the article: Abbas: Only solution is to declare Palestinian state