They didn't just do that though, they funded Hamas, allowed them to recieve weapons, refuses to recognize any sort of Palestinian statehood, pursued policies that enabled the most extreme factions of Palestinian resistance and thwarts any attempt at lasting peace. There is a long-term plan in the works by Israeli forces to annex all of Palestine. Israeli officials from top to bottom have made it clear they want to eliminate Palestine as an idea.
What would you do if you were Palestinian?
You are correct, and it is used that way, what I'm saying though is there isn't a distinct definition, it's used differently by different groups and so only really serves to muddy discussions and shun ideological outsiders.