Balata is a refugee camp about an hour north of Jerusalem by bus, on the outskirts of Nablus. It was one of the first refugee camps established after the 1948 War of Independence. Our guide said that he grew up in the camp - his parents came from Jaffa. In the days leading up to the war, the surrounding Arab countries threatened to 'push the Jews into the sea' but then sent ill-equipped and poorly trained armies (excluding Jordan's Arab Legion) to fight against the highly effective and motivated Jewish forces. These armies went home defeated and the Palestinians were left to pay the price. This happened again in 1967 and again in 1973.
The situation was made worse by the refusal of Arab nations to absorb Palestinian refugees but chose rather to foment conflict indirectly by paying the families of suicide bombers in cold hard cash for each suicide bombing. Israel offset this financial incentive by destroying the home of the family of the suicide bomber (most suicide bombers were male, young and unmarried). As I understand it, the destruction of the home of Hani shown at the end of this video is an example of this policy. For the IDF version of what happened to Hani go to this link: (http://dover.idf.il/IDF/English/News/today/2008n/04/1801.htm)
The UN has added fuel to an already inflammatory situation by essentially making refugee status hereditary. By their definition, I may be considered a refugee because my ancestors were displaced by Cromwell when he waged war on the Scottish Covenanters!
I hope this information adds some balance to what you see and hear in the video.
One final observation - Balata is the most militarized place I have visited. Death and destruction are glorified everywhere. I can only imagine the effect this must have on kids growing up in this environment.