There was no Israeli language, no Israeli country, No Israeli currency etc for nearly 2000 years.. until the European refugees from Christian persecution decided to colonize Palestine in the 1900s.
Israeli language and culture has never gone away, where is the "palestinian" language or culture? When did the group of Arabs who refer to themselves as Palestinians ever control the country anyway?
Approximately 70% of the land availible for purchase was bought up by Israelis prior to 1948. The Arabs started emmigrating to Israel en masse because they thought they could get a free lunch at Israels expense.The arab population in the mid 19th century was only 250,000 and they lived under terrible conditions. When the Israelis started to return to their land which they had purchased and spent more money on developing the Arabs moved in also to see what they could grab.