Please quote Jews calling themselves Israelis before the creation of Israel.

I am s little surprised that you do not know that Israel and Judea were separate regions within what was called Canaan and came to be called Palestine.

Surely you're not claiming that all Arabs were Paestinians? Only Palestinian Arabs identified as Palestinian.

And where do you think the Phoenicians went if they didn't breed with the other inhabitants of Canaan?

Israelites were not Israelis. That'd be like saying Carthaginians considered themselves Tunisians.

As for your "racist" charge: https://comrademorlock.medium.com/the-identity-trick-plus-ten-jewish-heroes-7b50fce724dc