They did and they are recognized by 127 countries, but not the UN. They are not seeking statehood. They are seeking recognition.
And that really is all Israel wants...they've already said if the palestinians will honestly state that Israel deserves to be recognized as a state, they will talk borders. Hamas won't recognize Israel for anything, so why should Israel give in to them on anything?? Every country around Israel has said they need to be wiped off the map...what's keeping them from doing it?
Palestine has had borders since 1922. Israel has none. Israel sits inside Palestine's borders. The talk about borders for a Palestinian state is to change Palestine's borders to make room for Israel.
The land Israel has now was fought for and WON in 1967. Should every country that fought a war and obtained land because of it just give it up now? Should we give land back to Mexico? Or give all the land back to the Indians that we took away?? The land belongs now to Israel...and there is no thing as Palestine.