Terrorism is pretty much a propaganda word since it's virtually always applied to non-state actors rather than states, even when they take the exact same actions. And even among non-state actors it's usually a political designation, with commentators long having described the arbitrary distinction between terrorists and freedom fighters.

It mean Israel is a state sponsor of terrorism and it also, do, terrorism, themselves

Israel a terrorist state. Calling it's citizens terrorists is perfectly apt.

I cannot think of anything more defeatist than simply accepting the status quo's framing of language and surrendering it wholesale to the machinations of the liberal propaganda machine.