Ben Gurion declared the state and sought recognition despite the conflict with the neighbouring states. The Palestinians are perfectly entitled to do exactly the same thing i.e. seek int'l recognition for their state even in the absence of a negotiated peace treaty with this oh-so-belligerent neighbour. Then the two states can sit together a legal equals and negotiate a treaty that ends this conflict: state-to-state, rather than as serfs-to-overlord.
Palestinian teen arrested for allegedly rioting in East Jerusalem (Haaretz)
from the article: Abbas: Britain and France would recognize Palestinian state