I think its bit more complicated than that.
1) There were no Palestinians before formation of modern Israel, just native arabized tribes. Palestinian nationhood only started forming as a reaction to Israeli settlement. You could see parallel to First Nations in North America.
2) If Israel did withold water from local arabic population, said population would just die of thirst.
3) Israelis indeed do treat Arabs as second class citizens, thats completely correct. Its worth mention however that United States put people of japanese descent into concentration camps after Pearl Harbor and kept them in isolation until imminent danger of invasion passed. Sometimes ideals have to take backseat, when national security is at stake.
Now, if you watch news, youd get this idea that Israelis are middle eastern superpower - while quite developed, its still seven million people surrounded by hundred plus million Arabs, who are more or less hostile since turbulent creation of the state.
Nope, is very simple. Just imagine that you live quietly in your country, territory or whatever you want to call it, then for reasons beyond your control (wars in this case) immigrants begin to arrive to your country. Despite not being the majority, one day they decide that this territory is theirs (thanks to the approval of a country foreign to that territory) and form a independent state and the rest, do what you want but outside my territory. Try to be empathic and think what you would do...
So in my opinion...fuck israelites, i hope one day they recieved all things they did x100000000000000. If they did not have the support of the great powers, in which most powerful people are Jews, they would be nothing...Probably a palestinian more.
I suppose this is similar to what the Greeks felt as they see the Ottomans rushing through a breach on Constantinople's walls?
I wonder how the native americans and native canadians feel about us? Our ancestors in the west killed millions of them all for land. At least the israelies haven't done the ethnic cleansing like us westerners did not so long ago..
I wonder how we would feel about the native americans and native canadians, if 10% of their revenue from all operations on tribal lands including the casinos, were dedicated toward terrorist and suicide bombings in the American heartland.
That's the comparable with the Palestine Authority today.
Can't argue with this.