The Palestinian demands are to end the blockade and recognize them as a state.
No, the demands of Hamas (who runs Palestine now) are that every Jew be killed (it's in the written charter, that is not hyperbole). They include the right to keep all arms, including rockets, so they can continue to fire them at Israel.
Also in the demands are that Israel not be recognized as a star (they do not currently). If it's reasonable to recognize someone else as a state, then Hamas not doing so with Israel is obviously unreasonable - by your own definition.
It's just a shame that people like you do not actually look deeper to see what is going on. In now way is allowing Hamas to gather far more arms to attack Israel reasonable. That is the only thing that lifting the blockade would cause to occur. Food and medicine and other relief is already allowed to enter the country freely.