They hold an election long ago and it ended with a civil war in the Gaza between Hamas and Fatah ousting Fatah. Hamas and Fatah are both afraid for holding new elections. Sounds very democratic. Currently many Arabs are living within the state of Israel, do you think they prefer to live in a Palestinian state. I think if you hold a referendum asking them if they prefer to live in Israel or in the Gaza of Westbank that they prefer Israel.
Palestinian girl, 17, arrested in Old City of Jerusalem with knife in her bag (Haaretz)
from the article: Spain recognizes Israel as Jewish homeland, for first time