Yes, Palestine is the classical Greek name of the region, derived from the Philistines. Herodotus already called it that. The leadership constantly changed hands, over the centuries. Has nothing to do with Islam. Jews and Christians and Druze and atheists are Palestinians, if they are born in Palestine.

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That's why the British-founded "Jerusalem Post" paper was originally called the "Palestine Post". The Jews in Palestine used to refer to themselves as "Palestinian Jews", but they rebranded themselves to fit the new nation of Israel, as they're now citizens and not merely residents in a colony.
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