The Israeli economy couldn't sustain such a boycott. Note that some USA companies and institutions would also join the boycott. This is what made South Africa change their POV.
But yea, it is very doubtful Hamas is going to recognize Israel and that is what makes them such suborn fools. For Israeli to just focus on the PA doesn't make sense to me. What would that lead to? A two state solution that doesn't deal with Gaza will not bring about peace.
It would be practical to make an agreement with the PA and really forget
about Hamas. There are no settlements in Gaza and Hamas is really a
minor threat. But linking Hamas to the PA allows the Israelis to use
whatever Hamas does or says as an excuse not to deal with the PA.