They lived relatively peacefully under ottoman empire rule. In fact most palestinians were brought from many corners of the empire as manual labor. Read mark twains comments when visiting israel in the 19s century (before this imner migration started). It was a wasteland with a few towns and villages.
The thing is that the arab population was constantly incited against the newly arriving jews ever since the early 20s century. It was made worse during the british mandate after ww1.
Research Haj amin el husseini the SS general who was also the mufti of jerusalem and the temple mount. He was the main destabilizer until the mid 40s. This conflict was engineered by global interests from the very beginning.
The incited arabs caused murders and riots even in the 30s, way before israel was established. see "the arab revolt".