If a Palestinian state were created in the territories, neither the Arab nations and Iran or the Palestinians would be satisfied. Mahmoud Abbas of the Palestinian Authority has said that in that case he would press further claims against Israel — for right of return, etc. — in the UN and international courts. Proponents of Boycott-Divestment-Sanctions (BDS) have also made it clear that only right of return and the de-Zionisation of Israel would be a reason to call off their actions. And Hizballah claims that Israel is still ‘occupying’ Lebanese territory even after the UN carefully delimited the border.
It is not about ‘Palestine’, it is about Israel.