“I believe that the Jewish people have a right to have a state. And I believe the commitments that were made at the time—remember there was no Palestinian state. It was part of the Ottoman Empire. And I think we’ve had an invented Palestinian people, who are in fact Arabs, and were historically part of the Arab community.”
I'm not sure what Newt's point is, or why it would be an argument against statehood. Technically, I guess you could argue he is correct. What I don't think he would agree with, even though it is absolutely true and uses the same logic he applies to Palestinians, is that "Americans" are also an "invented" people. There was no "United States". It was part of the British Empire. American people, who were in fact Caucasians, were historically part of the European community.
Other "invented" people? Oh, almost every single nationality on Earth.