That would be rewarding Israels actions though. Similarly your arguments apply to Israel as it doesn't meet all of the standard criteria of statehood, should it's statehood be revoked?
How about Gaza/West Bank, no even before Oct 7 attacks it didn't look like a state. Israel is right now so much more powerful that it won't let Palestinians have independence. This situation is so strange I don't have time to write a more detailed answer about my opinions.
The only moral viable solution I can see is 2 separate states. At this point support of anything else is supporting genocide and ethnic cleansing. If it doesn't happen then that is a deliberate choice of the US and I fear for the world never mind Israel or Palestine.