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Doesn't look like a fake defacement, google.ps has looked like google since 2009 according to archive.org: http://web.archive.org/web/20090812080241/http://www.google....

Right, but someone just changed the domain to point to a new IP address. So no one hacked Google's server.

Exactly. Instead of showing up Google, these hackers (assuming they are indeed Palestinians) have just shown up their own domain registry.

Yes, using google's DNS servers go to authenticated google search page.

"The page was restored within an hour of defacement."

Not it wasn't. It's still hacked for me.

Wait for your DNS to propagate from the hacked server.

#dig google.ps @8.8.8.8

Nope, still 41.77.118.2

Just wait. It takes time.

Funny though that they didn't flush the incorrect cache on their (Google's) own DNS service.