What gets me is that "Occupied Palestine" refers to an area which is full of Palestinians and is governed by them. Hell if I know who it's supposed to be occupied by, because the Israeli government and military tries to stay out of it as much as possible. It's kind of hard to occupy something when you're miles away from it.
And most of the territory isn't even disputed; Israel would gladly give it up for a Palestinian country if they would quit trying to kill Israelis. In fact, Palestine could probably get everything that's disputed too, except for the Old City in Jerusalem.
Either the Palestinians have the best P.R. campaign manager ever, or the world is just so desperate to hate Jews that they'll swallow anything.