I appreciate the mention. That had been my take on it too.
In recent years I have begun to only use it where it makes it clearer in the context of actions by political entities.
If Sweden recognizes a “Palestinian State”, it’s silly for me to reference giving statehood to the Arabs on the West Bank and Gaza. It’s going to be called Palestine whether I like it or not.
When I reference these people, I call them the Arabs on the West Bank and Gaza. I will not refer to them as Palestinians.
I can see referring to them as Palestonians. When no weapons are around, they’ll use stones to throw at Israelis; they use stones to honor-kill woman; their utopian society is the Stone age.