OP is right. The name "Palestine" was first given to the whole area by Rome as an insult to Israel whom they conquered. The name "Palestine" is a latin derivation of the name Philistine who were ancient Israel's enemies.

Rome did that just about everywhere they went. They usually named newly conquered lands after the generals who took them. Another example is Africa which was named after the Roman general Scipio Africanus.

The modern day "Palestinians" are the nomadic people who surrounding Arab countries refused to let come back in after the 6 days war because they were and always have been nomadic and nothing but trouble.