What the place was called 3000 years ago is irrelevant; today it's called Israel, and that's where the archaeologists have digged it up. The article actually says "modern-day Israel" and "modern-day Britain" in places. (Because, of course, 3000 years ago what's now called Great Britain wasn't called that either...)
The name "Palestine" was given by the Romans. The area was known to it's inhabitants as Judea. During the iron age the kingdoms of Judea and Israel existed in the area.
The name "Israel" first appears in the Merneptah Stele c. 1209 BCE: "Israel is laid waste and his seed is no more."
