All this talk about Palestine makes me wonder. Is Palestine a shithole?

Recently I've been seeing loads of posts, even inside of Israel, against the occupation and about the conflict that really distressed me. It doesn't help that I've been feeling extremely depressed as well. I started wondering what the point of life is, what would make it better for everyone. I also wondered why all the Palestinians who left Israel in 1948 didn't just integrate. I thought that if that was the case, we wouldn't have as much of a conflict and tensions between Israel and Palestine. I wondered what would happen if everyone just gave up, and we all decided to be one country. But the thing is, between that time and now, the conflict has gone on for so long, and there's so much tension, so it's hard to know what would happen. But then I thought if there was such high tension as well. Palestinians aren't allowed into Israel, so they have no reason to stay where they are and Palestinians are struggling quite badly so this would help them. This however also made me wonder, if the situation as bad as I made it out to be? I live in Israel but have never been to Palestine. I've seen loads of posts about Palestine being a shithole, however as far as I know that's from people outside of it, and I'm just extremely confused. Is it actually this bad?