Arteta saw red - shortly after scoring a penalty - after a clash with Palace striker Marouane Chamakh some 35 yards out, the pair falling in a heap following what looked like a 50/50 challenge.
Following consultation with his assistant, referee Chris Foy viewed it as denying a clear goalscoring opportunity and the midfielder must now serve a one-match ban, the midweek Capital One Cup tie against Chelsea he was unlikely to be involved in anyway.
Boss Arsene Wenger hinted that Arsenal - who went on to win the game 2-0 - may appeal against the red card anyway, and Arteta told Arsenal Player: "It was a very harsh decision to send me off. Chamakh kicks my fight foot.
"I have seen it on television. It is 40 yards away from goal too.
"It is true that I tried to block him with my hand but then he came with his left foot into my right calf and then we were both on the floor. It was never a tackle from me."
Wenger, meanwhile, took satisfaction from taking the points from a scrappy game and he says that his players must believe in themselves if they are going to win the Premier League title.
"The only thing we can do is win our games," Wenger said.
"The only thing which is important is every win makes you a bit stronger and strengthens the belief.
"We have difficult games coming up, and that will be a good test, but I am confident."