As it now stands, there are two nations on the soil of geographic Palestine, an Israeli one and a Palestinian one. The Palestinian nation, however, is prevented from having a national government. Palestinians are stateless, they are a homeless nation. They are kept stateless, and therefore without basic human rights, by the much stronger Israelis, who get billions and sophisticated weaponry from the United States annually.
That disparity between a full Israeli nation and the stateless, rights-less Palestinians, has driven the conflict and ensured that Israel comes out on top.