If we are talking about Democracy—which is where I started this—then yes. If occupied peoples don’t have representation in the government occupying them, yes, that’s very obviously less democratic than if they did. Quite literally by definition. This shouldn’t be controversial.
How many times were they offered statehood. How many times did they attack Israel? Why is there a wall? You know what happened when the wall went up and security blockades went in? The number of Palestinian suicide bombings dropped. Palestinians have decades of history of terrorism. They could have been like Singapore. But they chose terrorism.
Palestinians already have statehood: Palestine is a state, just like israel is a state. They are exactly equal in value and in their right to exist free from coercion by the other.
The issue is that israel is attacking, invading, occupying, annexing, and genociding the state of Palestine.