The dispute surrounding the name Palestine has been part of Israel's denying the Palestinian's right continue to occupy the area they have done for millenia - it is immaterial one way or the other.
It's official use to identifya part of the Arab lands dates back at least to the 7th century - in anybody's book, thirteen centuries is long enough to give the right of a claim to live in the area, except the Israelis, it would appear.
Jim Carroll

"The name Palestine is given to the region spreading from eastern Mediterranean coast to the Jordan Valley to the area covering Galilee Lake in the north and southern Negev Desert. The origin of this word lies in "Plesheth". This is a name appearing frequently in the Bible and have started being known as "Philistine" in English. The world root of "Plesheth" lies in the word "palah" was is a term used generally in the sense of migratory, referring to the Palestinian's conquest of the coast of Mediterranean. These people were mostly originates of Asia Minor and Greece and gradually became a part of the Arab world".