Palestinians living in the Palestinian Territories are not Israeli citizens and cannot vote. I would say the Palestinian Territories are occupied, not part of Israel (though Bibi definitely has a sizable camp in his government that would love to make it so).

Do we expect occupied peoples to have a vote? sort of depends how you define democracy. Under an American interpretation (no taxation without representation, 1 person 1 vote) there’s a good argument that you should count occupied peoples.

It’s never so simple is it