I think the true reason for the Palestinian Arab refusal to recognize Israel is found in Van Zile’s piece:
Jews stay in the land through the force of arms and diplomacy.
The existence of Israel means that Jews are no longer willing to pay the jizya, no longer willing to accept dhimmi status. Israel gives Jews the ability to live freely. I think that’s the point that Abbas and the rest of the Palestinian Arab leadership are simply not willing to accept. This is the real reason underlying their refusal to recognize Israel as a Jewish state and their refusal to accept a peace agreement.