Here is a short article giving us the background as to why the Palestinians have rejected statehood 3 times before now. Here is just one quote:
He then moved on to Berlin, where he spent the duration of the war as a prized ally of Hitler living in luxury with a princely stipend — twice the salary of a German field marshal. Like the Kaiser in World War I, Hitler hoped that the natural congruence between Islam and anti-Western, anti-Jewish sentiment could undermine the allies.
From Berlin the mufti broadcast Nazi propaganda to the Arab world and helped recruit a brigade of Bosnian Muslims for the SS. Had Rommel’s campaign succeeded in North Africa, Hitler planned to install the mufti as the head of a Palestinian state. Together, the Fuehrer and the mufti planned to exterminate the Jews of Palestine. During the Nazi attempt to impose “the final solution,” the mufti issued “a canonical statement of the connection between Nazism and Islam” as rooted in the Koranic prescription that “the most hostile people are the Jews.”
In the post-war years, the mufti’s intransigence was brought to bear on the U.N. debate over a partition for Palestine. Arab League Secretary General Abdul Rahman Azzam vowed, “This war will be a war of extermination and a momentous massacre which will be spoken of like the Mongol massacres and the Crusades.” Appropriately enough, the military commander of the Palestinian Arab Liberation Army in the months before five Arab nations joined the fray in 1948, was Fawzi al-Qawuqji, who had also spent WWII in Berlin.