Why yes? : US will appreciate us + diplomatic ties.

Why no? : There's no such urgency, since it won't really serve the Palestinian cause. Israel can't be expected to provide us her nuclear weapons and cooperate with us, the democratic distortions she's going through, her economic instability; the anarchy and political instability our recognition of Israel will cause in Pakistan plus the polarisation of public opinion and rise of extremist religious elements in our society. Consequently, Muslim world may recognise India's right over Kashmir.

@topic:
Good stance, but this will make Palestine endure even more. Israel feels that Palestine had violated previous agreements with her (1993 Oslo Accords), so she would act accordingly. They even would not transfer tax and tariff funds. But it's always good to speak for yourself.