Yes. Abraham is a myth. Moses is a myth. Jesus, while a historical figure, is a myth insofar as his divinity is concerned.
But what's not a myth is that the Israelites arose out of the Canaanite hill tribes of late Bronze - early Iron Age Canaan. They ARE the indigenous people.
But a Roman emperor's renaming of Judea as "Palestine" is a vile propaganda ploy which still reaps dividends.
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And let me be clear: By "myth", I don't mean "lie". I mean a story, a way to explain one's history to oneself which isn't based on empirical evidence.