The PA does not recognized Israel as a Jewish state because they are not prepared to end the conflict. The purpose of the UN resolution is to recognize for the PA the territory of the West Bank and Gaza while the PA does not give up something that Israel wants (so-called right of return). When Israel refuses to withdraw to the pre-1967 borders, the UN will order sanctions. It is a very clever strategy. Sanctions are Israel's weak spot since a strong economy is need to sustain the military and Israel exports 40 of it's production. Effective sanctions will, in effect, equal a military defeat.
Germany shelves Nazi crimes probe of US national Karkoc (AP)
from the article: To be fair, what's really at stake in recognizing a Jewish state?