You are talking about international relations and not "statism". You are using the term improperly (see Satv's def).

That said, relations between Israel and Palestine are much more an issue of ethnic and religious historical differences which are not going to be fixed by simply “recognizing another state”. Palestinians, along with other Arab states, refuse to recognize Israel as a state; therefore, what is Israel’s incentive to recognize Palestine? Israel has tried to compromise with various peace accords, however, the Arab’s cannot give an inch of ground. There will be no compromise until Palestinians realize that compromise requires a give and take, not just a take.