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.
The Israelis had terrorism but they also had a superior military supply line and backing from major Western powers, which the current terrorists do not. If the Soviets were around they'd love to exploit this situation and get revenge for Afghanistan. But they're not.