First, it doesn't matter if the Palestinians recognize Israel as a Jewish State or a Scientologist State or a Pastafarian State. A peace treaty does not depend it. From your link:
Abbas told the Palestine Liberation Organization’s Central Council at a meeting Saturday that the PLO recognized Israel as a state in 1993 and should not have to accept its religious identity, the French news agency AFP reported. He added that neither Egypt nor Jordan was required to recognize Israel’s Jewish character when they signed peace treaties with Israel.
And second, even the Israelis haven't declared Israel to be a Jewish State. Every time they talk about it they keep getting stuck on what it means to be Jewish, with one side arguing for a religious definition, another side arguing for an ethnic/ancestral definition, and a third side trying to find a way to keep the issue from ripping the coalition government apart.
The notion the Palestinians have to recognize Israel as a Jewish state is just a ploy Netanyahu and his supporters are using to stall for time while Israel continued to annex more and more of the West Bank.
I sometimes wonder what the next shifting of the goal post will bring. Suppose the Palestinians recognize Israel as a Jewish State. Any guesses what the next demand for recognition will be?