The strategic objective is to take over Israel.
The P.A. (and Hamas) hope to achieve this by using the most horrific and dramatic terror tactics to stimulate more popular support for Israel's extreme Right-Wing and extreme solutions, hoping to eventually provoke Israel into forcibly relocating the Arabs into Jordan, which, if it were to happen, would bring about a cessation of all forms of US support. This would significantly weaken Israel and embolden its enemies, leading to a regional war, chaos, and/or international military intervention, creating new opportunities for the Arabs to get far more territory than would have been possible through negotiation, maybe even the whole thing.
At least, that's the plan, adapted from the handbooks of other terrorist movements that arose in the 1960s.
Unfortunately in discussions about this topic, people often forget the bigger picture, and fail to ask such questions as: why doesn't the P.A. simply declare a Palestinian State, like most other new states have over the past couple of centuries? What are they waiting for, permission from Israel?
Clearly, the reason is that such a declaration would entail an assertion of where the boundaries of the state are. If those boundaries put Palestine adjacent to Israel, it implies a final recognition of Israel itself and an abandonment of their objective to destroy Israel. On the other hand, if they declare a State with boundaries that include Israel, this is an aggressive stance that would undermine the long-cultivated image of the P.A. as a victim, which the P.A. has come to depend on for inspiring much of their support, especially outside the Arab world.
Thus, only continued ambiguity serves their aim of instigating a cataclysmic upset in the region. Hence, the longstanding evasion of anything leading to final status talks. This approach, combined with the unrelenting pressure of terror, feeds the chaos that they see as the means to gain new opportunities.
The UN's continued undermining of Israeli sovereignty merely adds to the ambiguity and chaos, with the effect of encouraging the aims of terrorists, and defeating its own purpose of fostering international peace and security.