>They are getting close. Hamas has agreed to the Arab Peace Inititive, which calls for "The normalization of relations [with Israel] in the context of a comprehensive peace".
>http://en.wikipedia.org/wiki/Hamas#2004_-_A_10-year_truce
>http://en.wikipedia.org/wiki/Arab_Peace_Initiative

From the first link regarding the 10 year truce:

Hamas leader Sheikh Ahmed Yassin stated that the group could accept a Palestinian state in the West Bank and Gaza Strip. Rantissi confirmed that Hamas had come to the conclusion that it was "difficult to liberate all our land at this stage, so we accept a phased liberation." He said the truce could last 10 years, though "not more than 10 years".

I don't see how you could characterize that as getting close to recognizing Israel's right to exist.