Oh, please. Do you not see what kind of side you're trying to align yourself with? In order for a relationship work, it has to run both ways. We may extend hand to that state, but they wont do the same lest it be it for easier espionage. Why? Simple, because they are strategic partners of India and United States, Pakistan does not hold any leverage over Israel, therefore us extending a diplomatic hand wont do us any good against India, in fact it will probably only open a new window of opportunity for CIA, RAW and Mossad.
Furthermore, your alignment with Israel puts at risk your relationship with Islamic nations like Turkey and Saudi Arabia. While there are rumors of backdoor diplomacy between Israel and Saudi Arabia, Pakistan should not be in the open field, but rather keep itself aligned with its strategic partners. So, even if you extend hand of diplomacy to Israel, your relationship with Turkey and possible some Arab nations will be at risk, and is that something you want to risk?
That's your logical answer, i.e. there is no value in diplomacy with Israel because you don't have any leverage over them, and they have much greater relationship, in fact very close, with states you consider hostile (USA and India), and you also risk your relationship with states like Turkey, Syria, Iraq and Iran, along with possibly some Arab states. It is a very thin thread line, don't walk on it.