Not really. I mean, Palestine rejected that. It's like having two brothers fight over their fathers possessions, one of them agreeing to a legal deal, the other disagreeing, using other methods to get what he wants, but fails, ends up with less then he would of gotten then uses the past deal as a basis on what they should get. (Despite having rejected it).
I don't agree that there is no legitamcy to a palestinian state, but there is less so then there is an Israeli state. If there was a one or the other situation (which there isn't and it should never get to that) you'd have to go with Israel.
The "made up" country part though I think is probably a reference to the fact that there never was really a historic palestine. The area pretty much always being a part of some other distant empire, except when being ruled by the jews.