So what?
The UN has degenerated into a dysfunctional group of the worst scum of the earth, with a few exceptions.
They would recognize the Mexican and the Colombian Drug cartels as "legitimate countries," given the opportunity.
So I repeat, 'so what?'
It takes a lot more than the blessing of Cuba, Venezuela, Colombia, Pakistan, China, Iran, Qatar, U.A.E, Kuwait, Yemen, and a bunch of muslim-led African basket-case countries to pretend that another sad excuse for human animals actually know what a real, functional independent country is!
What “Palestinian” leaders and many others understand is that if “Palestine” is recognized as a state, it almost immediately stops the special “UN refugee status” to which PA owes their existence and “donations” / “support” money, which are unaccountable - just ask Suha Arafat.
The Palestinian tax base is minuscule, and much of it is derived from the Palestinians who work at Israeli factories or other enterprises.
So they can talk a good game about “independent state” and “occupation,” but financially it would be a disaster for PA and the step down for the people who live there.