They don't even recognize a half-destroyed external wall of the rubble as something belonging to Jews. This is an indication that in the long run even if they officially sign a treaty that recognizes Israel, they will still be hostile. The worst thing Israel can do is to imagine that the peace will be possible. HOWEVER, a long term truce is possible, provided that Israel is strong enough to have a deterrent against aggression.
North Korea leader Kim Jong Un hails accord with South as landmark (Reuters)
from the article: U.S. condemns Palestinian claim that Western Wall 'isn't Jewish'