D'oh! A late-comer...
I didn't check out AofA's sites but Canaan was a regional name rather than the name of a specific people or nation, like "Central Europe" or "New England". It meant "The Land of Purple" because of a famous and rare purple dye produced there natively. The word "Canaan" is probably from the Ugaritic dialect of the Semitic languages, and was in widespread use long before the Jews showed up. Egyptian records use the term for centuries before the Jews, although often for different parts of the eastern Mediterranean coastline. Canaanites were a hodge-podge of different peoples, mostly Semitic but not exclusively, as Locutus described well.
Modern Palestinians derive from (again, as Locutus and AofA described) the mid-7th century A.D. Arab Moslem invasion of the Levante. Like its predecessor name "Canaan", Palestine has historically referred to a region and not a specific nation or people - until now. It supposedly derives from the ancient name "Phillistine", though I can't confirm that one. It was long considered a part of either Syria or Egypt, until its boundaries were expanded by the British Mandate of 1918-1948. With the creation of Trans-Jordan by the British, and then the creation of Israel in 1948, the term came to refer exclusively to the lands west of the Jordan River. Ironically, the Moslems of Palestine and the Levante in general (Lebanon, Syria, Palestine) were long known for their liberal attitudes and cosmopolitanism well into the 20th century; the events of the past several decades have reversed that image considerably.
If your question is whether the histories of either the Israelis or the Palestinians gives one or the other group historic rights and claims to the area, well I think you're barking up the wrong tree. I am strictly against using history to attempt to justify modern political claims or arguments between nations. To take one or the other side in the Israeli-Palestinian conflict is to ignore the reality that both parties (and others!) have a long historical association with the region at different times, and have both had an immense impact in the historical make-up of the modern region. That historical boundaries and cultural spheres have overlapped geographically is scant reason for claiming real estate. I've said it before and I'll say it again; dirt doesn't care who lives on it. Yes, some areas are of a very historically sensative concern for both parties - the Dome of the Rock and the Wailing Wall in Jerusalem being prime current examples - but these and all other disputes between Israelis and Palestinians will have to be resolved based on modern realities and expediencies, and not history. If both sides were reading the real history of the region, after all, then neither would be attempting to use it for their modern political advantage.