I always get a chuckle out of an Israeli politician who says that the Palestianians will never get a state by terrorism. If it weren't for the Zionist terrorists who rejected the one-state solution that Britain originally proposed, there wouldn't be a Jewish-majority State of Israel today. Given the obvious example that terrorism can work, why shouldn't the Palestinians think so, aside from the obvious difference that Britain didn't really care very much one way or another who took charge of the territory while Israel obviously considers it an issue of vital importance.
Plus they elected former terrorists leaders as PMs later. Plus they actually supported Hamas in the 70s as a counterbalance to the PLO. I obviously won't support any terrorist actions against civilians, but in many ways Israel is just reaping what they sowed.