Somebody has to take the first step.

Since the Palestinians can do so, and it would clearly be to their great advantage politically, that's what they should do.

They've had 64 years to think it over, and they they still haven't. I don't understand why not. Had they recognized Israel's right to exist any time up to the 1967 war, the situation today would be radically different. (That is far short of full diplomatic recognition, by the way.)

Unlike a change in Israeli policy, recognition of Israel's right to exist would seem to entail no risk to the decision-makers whatsoever.