The policy of non- recognition failed for over five decades. No one can look over the history of intifadas, wars, and waves of terror and say it was the least bit successful at bring peace. The emperor really has no clothes: the peace process you praise has long been a figment of your wishful imagination.
It is more useful to try to understand why the policy of non recognition failed so miserably. The reason is clear if you think about it just a little bit. The policy of non recognition gave rejectionists a veto on negotiations. To prevent recognition of Jerusalem as Israel’s capital, all they had to do was to refuse to negotiate a peace agreement.
Acknowledging the reality that Jerusalem is Israel’s capital is a clear message: the power of the rejectionists is broken.