I say again, Israel does not recognise the state of Palestine. 96 states currently recognise the state of Palestine, Israel is not one of them. Please check your facts before calling me out.
Lets review you words then: You said "
right to their own state", not an existing state. And by the way, while the PLO mumbles something about two states, Hamas refuses to acknowledge the right or Israel to exist in any area of the middle east. It is not a border dispute for them.
It is also strange that 96 states recognize the state of Palestine, because as far as I know, the Palestinian never declared independence. They keep threatening to do it, but know that if they do Israel would have every legal right to disconnect any relation with them, close the borders and they will loose their refugee status and all international aid that comes with it.
At least up to a year ago they were still only threatening:
http://news.bbc.co.uk/2/hi/middle_east/7254434.stmTry googling "palestinian declare independence": Should, could, may... I didn't find when they declared it.