Did he really say that?

Former US National Security Adviser Zbigniew Brzezinski gets as close as any American official I have heard of to describe the Israeli government as an illegitimate occupation:

The Israelis can defeat every single one of their current or potential enemies, but in doing so, they simply enlarge the number of those increasingly determined to use force in resisting Israel. In the long run, Israel would then face the same dilemma that France faced in Algeria, be worn down and eventually expelled. That is the historical reality that can only be ignored at considerable strategic risk.

You can't face the same dilemma as France in Algeria unless you are an occupation.