I still think the Sachar books, or as Ehud used to say, the Sacharbuchs, are worth reading for the long term history of the formation of Israel and for the sense of impending doom you get as you watch Britain fuck it up.

But I think, without having read this particular book, that I would recommend Edward Said's The Question of Palestine. Said was one of the towering intellectuals of the 20th century, born in Palestine, left in 1947 and was deeply affected by his heritage and displacement throughout his life. He wrote some of the soundest material on perspectives of the pan-Arab world, and The Question of Palestine is next on my list.

There's also a beautiful memoir called Strangers in the House, written by a prominent Palestinian attorney living in occupied Palestine, Raja Shehadeh.

Also, Drinking the Sea at Gaza gives a perspective on living in the occupied territories, interesting because it's pro-Palestinian and written by an Israeli journalist, Amira Hass.