They are obviously recognizing the Palestinian state which is composed of the West Bank and Gaza.
Yes, Israelis do that but it would only be fair if Muslims had a MEMRI channel as well as there is plenty of material for such a channel.
Yes, every Arabic speaker could learn Hebrew relatively quickly and vice versa. After all both languages are Semitic languages and closely related.
You are contradicting yourself. The governments are supposed to serve the people and the vast majority of all people in the West support a two-state solution and thus a recognition of Palestine as well as that of Israel which already has taken place. How can such a move damage any ties with Israel? In fact it should have the exact opposite reaction and help end this tiring conflict.
Besides the West, UK included, is obviously much more interested in having good ties with the 22 Arab countries and 450-500 million Arabs as the Arab world is home to the most natural resources in the world, extremely important geopolitically (hence all the meddling) and moreover has a 10.000 km long sea border with Europe (The Arab world has the longest Mediterranean coastline) aside from Europe having a big Arab diaspora.
I don't know about the trade volume between the UK and Israel versus the UK and the Arab world but I am willing to make a bet that the trade volume between the UK and KSA/UAE alone (let alone the entire GCC) is bigger than the trade volume between the UK and Israel. Much bigger.
I also know with certainty that there are more Arab billionaires in London and the UK than Israeli billionaires. Only Russians are close. In fact I know that we Arabians own many of the most luxurious apartments and land in London and the UK overall. Qatar alone has tremendous investments in the UK and a big political clout as well.
So from a political viewpoint UK would do a clever thing if they recognized Palestine but on the other hand I don't think that this move will change the close ties or damage them. Business is business and we Arabs know it better than most since we have done trade with the world for millenniums and when most entities of the world's entities of today did not even exist. UK obviously included here….