Obviously immediate steps need to be taken directly, to stop Israel from commiting genocide...but officially recognizing Palestine as State is equally important to ensure it's right to self-determination. Without that recognition, they will never have full protections under international law, regarding land claims or violations of their sovereign rights. They have no ability to negotiate on their own behalf, on matters of trade or defense.
This is very much like being alive, but having no documented identity. Sure, obviously you exist...but according to every system that exists to potentially support you...you don't. Access denied. You're fucked.