Since those days in the 1960s and 1970s, Palestinians have carried out attacks against Israelis, some of which have included attacks on civilian Israelis and airplane hijackings. Israel has labeled the PLO and all attacks against Israeli occupiers (including attacks against soldiers) to be acts of terrorism. It would take a while, but eventually Palestinian secular leaders realized that they need to find a different way to liberate occupied Palestinians areas.
As a result the national Palestinian movement came around to accepting the concept of sharing the land rather than sharing power in the area. This brought about the PLO’s gradual movement toward the concept of a Palestinian state as part (rather than all) of Palestine. The first intifada, which called for an end to Israeli occupation rather than the end of Israel, convinced Yasir Arafat of the need to recognize Israel, and this led to the exchange of recognition with Yitzhak Rabin on the eve of the White House ceremony where the Declaration of Principles was signed, and the famous Arafat-Rabin handshake that made worldwide headlines.
But that process, often referred to as the Oslo process, had one fatal problem. It failed to clearly identify the end goal of an independent Palestinian state. Yitzhak Rabin appeared to be moving in that direction until a radical Jewish settler assassinated him, killing a process that could have led to Palestinian statehood. Instead, and despite two short terms by Shimon Peres and Ehud Barak, Israel was ruled by the longest-standing demagogue, Benjamin Netanyahu. He succeeded in deceiving the world about his peaceful intentions while his consecutive governments built more and more illegal Jewish settlements and brought more and more settlers (many extremely radical, armed, and uncontrolled) to live in what was supposed to be the Palestinian state.