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Why do Palestinians and Israelites hate each other?
Tl;dr Israel showed up and kicked Palestinians out, Palestinians want their land back. Ensue 80 years of complications
And there wasn't a place called the United States of America until 1776?
Because Israel took over more land that was fully inhabited by the Palestinians (for the second time)
Assuming you're arguing in good faith, which is a huge assumption, the answer comes down to negotiating power. Egypt was able to get the entire Sinai peninsula back during these negotiations. Israel never fully gave up the Gaza strip, hence the second part of my tl;dr above: "Palestinians want their land back. Ensue 80 years of complications"