What it means is that the PL could technically recognize Israel while it’s autonomous internal state of Hamas continues its terror.
I guess the analogy would be if the US declared the pentagon to be a separate state—not beholden to any treaties past,present or future, and able to operate freely without oversight by the parent state that voluntarily maintains and provisions it.
There are other groups that claim to represent those same interest (Hamas, the Popular Front for the Liberation of Palestine (PFLP), The Popular Democratic Front for the Liberation of Palestine (PDFLP), and the Palestinian Islamic Jihad (PIJ). And don't forget the Iranians, and other Arab 9MUSLIM) countries that don't recognize Israels right to exist, and call for Israels destruction.
Hamas already has a base from which to attack Israel (Gaza). All they want is to turn the West Bank into another site from which to launch attacks. Whether they are adherents of Sunni or Shiite, they all call for the destruction of Jews and Christians, and the imposition of an Islamic Caliphate over the entire world. They view those who follow the Book (the Bible) as their enemies.
All that would happen is another violent group would raise its head, call for Israels destruction, and the world would try to appease them.