Yes, I believe Likud did borrow the phrase from the PLO. It fits nicely with the Israeli right wing policy of limiting Palestinian rights within a Jewish state.
As for it's use in the book. The book was published pre October 7th, so it wouldn't be a reaction to the current crisis. But since the phrase was being used almost exclusively by pro Palestinian groups then, I would guess that was why it was put into the book, either pro or anti.