Thanks for all of your insight everyone

Just to clear up one more thing with respect to the geography of the area. When comparing this map of Palestine with this map of Israel, it seems as though Israel, bar Gaza strip and West Bank, has almost been superimposed on top of what once was Palestine. So basically, I ask,

1.) During the numerous wars since the failed partition plan, has Israel virtually taken over Palestine? (NB - the phrase 'taken over' does not carry any connotations of Israel trying to dominate Palestine)
2.) Does Palestine essentially exist anymore? Or are all modern day Palestinians living in Israel?