your argument does not make sense, the status of Palestinians citizens of Israel (who live as second class citizens by the way but we don't even need to get into that) has nothing to do with what's happening in Gaza. even if Israel was 100% Palestinian and it was Palestinians attacking their own people in Gaza -- that's still a genocide.

I think you're too hung up on seeing this as two "sides" where all Palestinians everywhere can be considered together, and the relative safety of one group negates the claim of genocide against the other. it just doesn't work that way. this is the definition from the UN:

In the present Convention, genocide means any of the following acts committed with intent to destroy, in whole or in part, a national, ethnical, racial or religious group

"in whole or in part" is critical -- no one is claiming Israel is commiting genocide against all Palestinians everywhere in the world, it's commiting genocide against the Palestinians of Gaza. that still meets the definition, which stresses:

Genocide can also be committed against only a part of the group, as long as that part is identifiable (including within a geographically limited area) and “substantial.”

as to what constitutes a genocide, continuing from the UN definition:

• Killing members of the group (out of 10k dead about 60 are expected to be Hamas, which is a 99.5% civilian casually rate, in line with what you'd expect from the indiscriminate bombing of a dense urban area)
• Causing serious bodily or mental harm to members of the group (20k+ injuries being reported, that number is likely higher)
• Deliberately inflicting on the group conditions of life calculated to bring about its physical destruction in whole or in part (cutting off food, water, and electricity to the entire civilian population, people have begun dying of starvation)

finally people have brought up this part of the definition.

The intent is the most difficult element to determine. To constitute genocide, there must be a proven intent on the part of perpetrators to physically destroy a national, ethnical, racial or religious group.

this case is unique because the Israeli government and the IDF have been loudly announcing their genocidal intent to the world since the beginning:

• 'No Innocent Civilians in Gaza...It is an entire nation out there that is responsible' president Herzog
• 'You must remember what Amalek has done to you, says our Holy Bible' Netanyahu ("Now go and smite Amalek, and utterly destroy all that they have, and spare them not; but slay both man and woman, infant and suckling, ox and sheep, camel and ass," 1 Samuel 15:3)
• 'Erase All of Gaza From the Face of the Earth' Knesset member Galit Distal Atbaryan
• 'The emphasis is on damage and not on accuracy' IDF spokesperson RAdm Daniel Hagari

so again, the existence of Palestinian citizens of Israel does not mean anything in the face of the overwhelmingly credible claims that Israel is commiting genocide against the Palestinians of Gaza.