US/EU set impossible task for Hamas

Both the US and the EU are making any aid they offer to the Palestinian Authority conditional on Hamas recognising Israel's right to exist. But what does this mean? Israel exists on the basis of three things: colonial settlement, ethnic cleansing and racist laws. As far as I know it is the only state that exists on that basis. Now recognising Israel's right to exist recognises it's right to those three things. The colonial settlement isn't the main problem here; it's the ethnic cleaning and the racist laws. How can Hamas, or any Palestinian group recognise Israel's right to carry out ethnic cleansing? And how could they recognise Israel's right to have racist laws that all but explicitly make Muslims third class citizens? Well perhaps they could do that latter if Hamas goes for this dhimmi thing so beloved of neo-cons and zionists in the media.