Do you think it would harm Israel? No, only the Palestinian people will suffer more.
Diplomatic relations between Turkey and Israel are at lowest level in history. And thus Turkey sees great damage in terms of geopolitics. Turkey puts up with this loss for the Palestinian people. Not for themselves. From the perspective of Turkey, There is no pragmatic explanation for the broken of relations with Israel.
Sorry but you have completely severed your ties with reality. What kind of strategic partnership or coordination are you talking about?
I think, You don't even know what kind of situation Palestine is in. Turkey is one of the largest construction materials and medical equipment / facility donor countries for Palestine. Even now, Kızılay/Tika-build hospital is providing most effective Covid-19 treatment in there. Turkey's role in the civilians economy and trade too common and important.