Maybe they don't like it, but if so then I would have thought they would have chosen statehood when they were offered it in 2000 or 2008. Moreover, they never even had any land to begin with! No country of Palestine has ever existed. To reiterate, it was previously Jordanian-occupied, British-governed, Ottoman-ruled. Something else is clearly going on, beyond what you're saying.
I don't like the word "treat" in this context. I don't believe Israel "treats" Palestinians in any way. Rather, the state of Israel has a particular policy on the Palestinian issue because of their shared history, no small part of which is the Palestinians repeatedly attempting to eliminate Israel.
But if you insist on using the word "treat", then I'll add that I don't like the way Palestine treats the Israelis either.
Israel's policy is not based on ethnicity, it's based on citizenship, as is usual in a western democracy. Arab citizens of Israel have the same relationship to the state as any other citizens of Israel, for example.
I agree that many Palestinians are in an awful situation. I disagree that Israel bears the blame or the responsibility to resolve the issue.