That is nonsense. Palestinians are about 30 percent Christian (Jesus would have been a Palestinian if he was born today - Bethlehem is in the West bank).

Radical Islam was born in dictatorships like Egypt and monarchies like Saudi Arabia. It was the Afghan War in the 1980s that fuelled radical Islam. Osama, Ayman, etc made their name fighting the Soviets, not the Israelis. The PLO is a relatively secular organization - Yasser Arafat's wife is a Palestinian Christian.