They were literally offered a state less than one year prior to this. Clinton presented his final "bridging proposals" (The Clinton Parameters) to both sides in December 2000. Palestine would retain 92% of the West Bank, and all of Gaza. Israel voted to accept, then Palestine collapsed the talks. This remains the closest moment to Palestine obtaining statehood, since the entire Arab world invaded Israel the day it came into modern existence. It was brokered by America, and this is how America was thanked.