You know, just because they were allegedly Israelis, that doesn't mean they were Jews. A significant percentage of Israel's population is moslem.
Terrorists would think nothing of killing their own just to further the cause and focus the blame on Israel.
That is an excellent point. When Israel was founded, there was no one kicked out that didn’t want to leave. This included many Arab Muslims. But it doesn’t matter anyway since you can’t blame the larger group for the acts of a smaller one without some evidence. And your second point remains cogent. In the 2nd intifada Palestinians were killing each other right and left, but Jews were of course blamed instead by some.