Over the past two decades, Palestinians, like most Arabs, have been subjected to a large-scale campaign of incitement against Israel and the US. This is a campaign that is being waged through the media, especially Arab and Islamic TV stations, the internet, mosques and the rhetoric of leaders and politicians.
As a result of the ongoing incitement, some Palestinians and Arabs are no longer able to distinguish between those who support them and those who stand against them.
If you are told that all Israelis are evil, you do not see a difference between a leftist and a right-wing Israeli. You are being taught, from very early stage of your life, that Jews are "occupiers" who "stole" the land of Palestine from its rightful owners. You are also being taught that all Jews (including innocent civilians) are legitimate targets because they either serve in the army or identify with the Zionist movement.
Because of the indoctrination, a growing number of people in the Arab and Islamic countries regard all Israelis as "settlers." Palestinian spokesmen representing various groups, including Hamas and Fatah, often refer to Israeli cities (inside Israel proper) as "settlements."
During the last confrontation between Hamas and Israel, Palestinian media outlets would regularly report that rockets have been fired at the "settlement" of Ashkelon or Ashdod or Ramat Gan.