The Palestinians are incredibly ethnically diverse. They come from Egypt, Arab nations, Turkey, the Balkans, and a few are Semites from Israel. They did not even identify as Palestinians until the last 100 years.

Meanwhile, Israelite refers to the ancient Hebrew speaking ethnoreligious group that inhabited Canaan during the Iron Age. Some of whom modern day Israelites are associated with.

What happened to the rest of the semitic Jewish Israelites, they were dispersed and murdered by various empires over the last 2000+ years. Those dispersed eventually intermarried with the local population of their area, keeping their faith and diversifying their genetic material, but never ceding their right to the land from which they were dispossessed.

The genetic connection has been studied and studies find that 75% of Ashkenazi, Sephardi, and Mizrahi Jews share roots in the Middle East, often on both their paternal and maternal lineages.

"Y DNA studies examine various paternal lineages of modern Jewish populations. Such studies tend to imply a small number of founders in an old population whose members parted and followed different migration paths.[29] In most Jewish populations, these male line ancestors appear to have been mainly Middle Eastern. For example, Ashkenazi Jews share more common paternal lineages with other Jewish and Middle Eastern groups than with non-Jewish populations in areas where Jews lived in Eastern Europe, Germany and the Rhine Valley. This is consistent with Jewish traditions in placing most Jewish paternal origins in the region of the Middle East.[30][4]"