Meanwhile at http://google.ps ...



even more impressive is the fact that it is still up!

Jesus - I mean you would think one could just "turn off the switch" but it seems they've penetrated several layers of the OSI model here
 
I doubt they were able to penetrate Google servers or this would've been way bigger than a mere defacement. From what I have read, it was an exploit with the local Palestinian DNS registry.

Correct, it was a change of DNS. They also have fixed it, the reasons you guys are still seeing it is simply because your local DNS hasn't updated yet.