It is not reasonably questionable whether "Palestinians" (so-called, because there is, and never as been any historical nation or homeland for these Arabic peoples) have more freedom and equality in Israel than they would in any Arab nation.
They have much less 'standard of living' or 'way of life' in any Muslim dominated country. 'Palestinians' as they are called, are considered to be the gypsies and outcasts of the Muslim world. Most Muslim nations do not want them and will not take them in.
Palestinians, so called, are multi-national Arabs who congregated to Israel in the 60s and 70s during the "boom time" of Israel's growth. Israel was expanding and growing like any modern country and needed thousands of laborers to build. Arabs from all over the world answered the call. At one time Arabs and Israelis lived side by side, and never thought a single thing about it.
After Jimmy Carter unleashed Islamic fundamentalism (by ousting the Shah and reinstalling Ayatollahs) starting with Iran and then going global, the Arabs in Israel began to segregate themselves and became murderously violent. Only then did they begin to claim to be citizens of Rome/Greece under the law of Roman emperor Trajan and the conquests of Alexander the Great in province of Roman Palestine later Greek Palestine, which was established a hundred and hundreds of years AD.
Palestinians do not claim that they are an individually established Nation or Race. Palestinians claim that they are still a Roman province which was ultimately conquered by Greece. I do not know, and Palestinians themselves do not know, what Nationality all of this would make them. But whatever historical citizenship they claim under Roman or Greek law, it has nothing to do with the modern Nation of Israel.