The problem with withholding diplomatic relations to punish countries and change their behavior is that it usually doesn't work. In the meantime, the absence of relations robs America of a key diplomatic skill and the ability to intervene in a crisis.
In recent years, many American officials have regarded withholding diplomatic relations as a way to punish countries for actions ranging from human rights abuses, to failure to abide by international law, to specific treaty violations and acts of war. But state-to-state relations among nations provide an essential framework for the conduct of foreign relations. Having no relations, and the resulting prolonged absence of a diplomatic presence in a country, seriously handicaps America's ability to achieve major foreign policy and national security goals. Diplomatic relations should therefore always be maintained, unless security requires closing the embassy.
Those who argue that withholding relations can be used to correct a nation's undesirable behavior do so under the belief that the boost in image and standing that comes from relations with the United States will lead the targeted nation to make the necessary sacrifices to regain recognition by the U. S. government. The problem with this line of thinking is that it usually doesn't work.