Yes the names are similar and in my examples they aren't, but calling something by the name of another excisting but different thing, you just shouldn't do.
Like tongues, tongs and thongs are similar but when it is about picking bread items in the supermarket, I would really only want people to use one of these, and not the others.. ;)
If you'll add Catalonia it will be ok to add palestine
Definitely not a pre-existing country. There has never really been an independent Palestine. Ottoman Empire -> British Mandate -> Israel/Palestinian Authority/Hamas.