The archaeological record concerning early Israelite Canaan is extremely sparse: what that period looked like is largely a matter of conjecture. The picture is, of course, complicated by the fact that many researchers are looking to validate their religious agenda, and many (if not more) researchers are just as set on disproving the Biblical accounts: both attitudes tend to bias published works in the field.
As far as I have been able to determine in my professional studies, it appears that the ancientest Israelites were actually a fusion people: some of them appear to have been wanderers by choice, from other places, who eventually settled in Canaan; others appear to have been seeking a better place to live following escapes from Egyptian captivity; some of both these last simply colonized Canaan, living side by side with the Canaanites, while some conquered and uprooted the Canaanitish peoples they encountered; but some of the Canaanites seem to have simply been absorbed into the Israelite populace, either in intentional shifts of culture, or in a de facto assimilation over time (as with either conquest or colonization, the timeframe involved seems to have certainly been longer than that indicated by the conquest narratives in the Books of Joshua and Judges). This is all quite, quite early, of course: I should judge it being sometime between 1500 and 1100 BCE, give or take maybe as much as a century in either direction.
We have archaeological evidence to suggest that Israelite identity was relatively established into a familiar form by around 1000 BCE, and certainly by 800 BCE or so, even monolatrous Israelites worshipping Canaanite gods in addition to YHVH seem to have been clear on the notion that YHVH was the proprietary God of Israel, but these other gods, being Canaanite gods, were worth worshipping because they were local, and had predated Israelite securing of the Land. In other words, there was some acknowledgement even by worshippers of Canaanite gods that they were "their" gods, and only "our" gods by virtue of territorial conquest (even if the historical truth might have been de facto conquest by colonization).
So, the answer to your question, as far as I have been able to tell, is both yes and no. I believe Canaanites were among the earliest Israelites, but that proto-Israelites also came from elsewhere.