The thing is, the land itself is not the issue, there is enough land there. Rather, both parties have vastly different political ideals (and religions) and the people from neighbouring countries heavily disagree with Isreals politics.

After WW2, Great Britain gave most of the land to the surrounding countries (as far as I understand) but reserved some land for what is now known as Israel for Jews to be able to form a state. However, this did not sit well with the overwhelmingly muslim countries around it.

Good to know: Whether Palestine is a country depends on who you ask. Most countries in North America, Central/Western Europe and Oceania (Australia etc.) DONT consider Palestina a country while countries in South America, Africa and Asia overwhelmingly DO recognize it as a country (there are exceptions).