It also appears as though the priests who are claiming to be giving sanctuary to the Palestinians inside the church, are Greek Orthodox priests. I am not familiar with the Greek Orthodox church's ecclesiastical rights/laws of sanctuary, and how they differ from the Roman Catholic church.

The reports as to who the Palestinians actually are, and the reason why they are armed which make the most rational sense to me, are the reports which claim that the majority are actually the Palestinian Authority police (who are legally allowed to carry arms) who were patrolling in the area of Manger Square when the Israelis moved in, and they took cover in the church and other buildings surrounding the square. The remainder of the armed Palestinians seem to be civilians who have guns for self-defense. That seems to be the story given most consistently by those who are inside the church, ie the religious members and the Italian TV journalist.