The problem is that the reasons why the Pals have not declared a state before are still in place. When Israel declared itself a state it was ready and able to defend itself against the nasty response by Nasser and the other idiots who thought they could chase the Jews into the sea. Abbas does not have the confidence that he could beat Israel in a war of independence - we all know he can't. So if he declares independence it will be an empty jesture and may cost him his credibility. And yet I do think he should do it because he will have the entire world on his side and that is a card that Israel cannot trump.
Law expanding definition of terrorist activity passes first Knesset reading (Haaretz)
from the article: Abbas must unilaterally declare Palestinian state