that's not the point, what muslim nation has a democracy?
The Palestinians are a conquered people of many religions including many Christians.
http://en.wikipedia.org/wiki/Freedom_of_religion_in_the_Palestinian_territoriesA 2007 study by the United States Department of State indicated that religious freedom is generally respected by authorities, although discrimination and preferential treatment do exist. It found generally good relations between Christians and Muslims in the area, but high tension between Jewish and non-Jewish populations.
The Lebanese used to be a pretty stable nation till destabilized by outsiders.
What the Palestinians can be is unknown because they don't have a country yet.