Hmm. I still don't quite catch that argument. While there have been far more casualties on the Palestinian side than on the Israeli side, I can't see how there isn't an "Organized, large-scale, armed conflict between countries or between national, ethnic, or other sizeable groups, ...". Even if you argue that the Palestinian people does not currently exert sufficient and organized government control over a territory to qualify as a state, then it would still be a revolutionary war or a war of independence. Just because such an endeavor has not been successful yet doesn't imply the struggle isn't real. Genuinely trying to understand how calling it a "war" is false. As one counterexample, were the acts of the French Résistance in WW2 not part of the war, because they lacked central organization?