They have stated they accept your right to exist. You are the ones demanding the seven words. That says more about your insecurities about yourselves than anything else. Why do you need people to define who you are. It's up to you. The Palestinians are correct in their stance. The problem you percieve exists allows you to make it an obstruction to peace...Why? From where I stand it looks like pedantics.
Settlers from Esh Kodesh clash with Palestinians in the West Bank; IDF cordoned the area (Haaretz)
from the article: Why Palestinians can't recognize a 'Jewish state'