International law is pretty vague on whether you actually have to kill every member of an ethnic group in a territory for it to be called "genocide." The reason is pretty simple: if you insist everyone actually has to die for it to be genocide that creates a huge loophole. The bad guy simply has to kill enough of them that the rest know they damn well better run and it's not technically genocide because almost all of them successfully ran.
But since a lot of inter-ethnic conflict involves one asshole threatening to kill every member of another group, succeeding at some much less evil goal (ie: getting them evicted, beating up a couple hundred activists, maybe a mass rape campaign, etc.), which convinces everyone to run away rather then be killed, scholars have a continuum of evil, starting at ethnic cleansing and running up to actual genocide.
What actually happens in Israel is frequently on the low end of ethnic cleansing. There's a lot of unofficial, and officially deplored Jewish violence against Palestinians and suspected sympathizers that the authorities never seem to be able to stop. In '47 and '48 it was really bad. At Dier Yassam 107 civilians were massacred by the Israeli military, which released numerous press releases claiming that was evil, but never actually charged anyone with a crime for it. Similarly the first UN envoy to the region (Count Bernadotte af Wisborg) was murdered by Jews in the Lehi. Their military formation was disarmed, and a couple were charged with membership in a terrorist organization, but everyone was immediately pardoned and sent off to war. It created an atmosphere in which Arabs made the fairly logical assumption that some Jewish asshole would murder them and get away with it when the Israeli Army won, which in turn meant almost all Palestinians living within what is now the Green Line fled the Israeli War of Independence. That's textbook ethnic cleansing. You make an ethnic group feel unsafe, and they go away.
Today it's quite a bit better, but there's still a very influential section of Israeli society dedicated to ensuring that the Palestinian population knows they are non really wanted. Price tag attacks, the Israeli Courts total inability to protect the only Palestinian in the country with paperwork proving he owns land there, etc. prove it. Somebody in Israel wants Palestinians to think moving out is a real good option, the rest of the country ain't stopping them, and if they succeed it will be (by definition) ethnic cleansing.
Don't get me wrong. I'm not claiming that Hamas are wonderful saints, or freedom fighters, or that they would not do worse to Israeli Jews then the Israeli Jews are currently doing to the Palestinians, or even that they wouldn't end up treating Palestinians worse then the Israeli government does. Same with the PA. But none of that has any bearing on whether the Israelis are being honorable.