Marci I suggest The Lemon Tree by Sandy Tolan. It is non-fiction and is told from 2 sides: a Palestinian who had to depart his home and an Israeli who then lived in the same home.
Genia Lukin There are some really good books about the Israeli life in and around 1948. You could try Amos Oz's Panther in the Basement, Meir Shalev's A Pigeon and a Boy and Yoram Kaniuk's 1948. Unfortunately, a lot of the best books about the period are untranslated.
Steve Middendorf I didn't read it but the movie Exodus was based on the book of the same name by Leon Uris. It is said that this book is the basis for today's consensus in the US on the Jewish/Palestinian question. I grew up with that and it became part of my belief system. But now, given how little sympathy there is for the Palestinians, I regard it as propaganda. There's two sides to every story, but when the weighting is 1000:1 you gotta wonder.
Domic I just finished "Jaffa Road" by Daniel Speck, which starts in set in Haifa and Jaffa from 1948 . It covers the story of a Jewish family which imigrated from Tunesia and a Palestinian family who has to flee from Jaffa. I am not sure if there is an English translation from this German author yet. There might be a French version as I understood that he is also fluent in French (and maybe Italian). I would however highly recommend the book.
Mrs. Danvers This isn't *exactly* what you asked for but Drinking the Sea at Gaza by Amira Hass is a nonfiction account of Palestine written ny an Israeli journalist. You might find it helpful.