Actually, no. The people called "Palestinians" today have only existed since the late 1960's when Yassir "where's my welfare check" Arafat coined the slogan to falsely label a national identity to Egyptian, Syrian and Lebanese squatters.The simple fact is that Judaic people developed in Judea and have remained their for all of written history.
Correct, the Judeans (and other ethnic groups) living in Palestine gradually converted to Islam by the 10th century. They're called Palestinians today.