As far as the palestinians are concerned every inch of this land is Palstine and the struggle doesn't end until all of Palestne is liberated. In speeches to Americans Abbas says that he wants just 2 states based on the 1967 border in speeches to arab audiences he says that 2 states is getting a foot in the door and we will eventually liberte the rest of Palestine. If the palestinians have to say as a part as part of a formal condition iof statehood that Israel is a Jewish state and home of the Jewish people its basically it is saying we have no claim to Israel that belongs to the Jews. Unless they formerly accept Israel as belonging to the Jews the conflict won't end it will just be left stewing with groups saying we must liberate the rest of Palestine and one day its going to explode and we are going to have another armed bunch of palestinians to deal with and this time it will be even worse for us because we have no control in the palestinian areas and they will have a state with borders close enough to fire rockets into virtually all of Israel, Imagine Tel Aviv having the same problem as Gaza border towns like Sderot have now with rockets fired regularly. If the palestinians go on the record says Israel belongs to the Jews they can no longer consider Israel to be part of Palestine, they have to face the fact there can be no right of return because they will have said Israel belongs to the Jews not us. How the arabs in Israel take it which is a lame excuse is irrelevant and the arabs living in Israel already grudgingly accept the fact Israel is a Jewish state. All its national symbols, the working week days, the main language non of it represents arabs so if they can accept that already its not for Abbas to say no recognition of Israel as a Jewish state because of the arabs living in Israel. It is also the only way to stop the die hard supporters of the settlements accepting that they cannot annex Judea & Samaria or go live there without permission from the arab government. As Israel reciprocates by recognising this land as belonging to the palestinians its a fair demand.
Clashes between IDF and protesters in Bethlehem and East Jerusalem (Reuters)
from the article: Israel's Jewish identity card