It would make no sense. Giving peace and the possibility to continue buildup even stronger would just make Hitler come back with an even bigger invasion soon. Not even speaking about the consequences of France falling into German sphere of influence.
Well if we give the full benefit of 20:20 hindsight (and also we completely ignore the bad things Nazi Germany did but we cant discuss that anyways), then it actually makes perfect sense for the UK to sue for peace in 1940. Hitler did not want anything significant from the UK, just the old German colonies, and after getting that Hitler just wanted to make the uber-germanic alliance with the Nordic Countries, Netherlands, and UK. Furthermore, Hitler loved the British empire and seeing it die like it did post ww2 is the last thing he wanted. To him the British Empire was a stabilizing force and a perfect example of the superiority of Anglo-Saxon racial stock over much of the world.
Essentially, why kill your fellow ubermensch (I dont believe Hitler regarded Anglo-Saxons as Aryan, but if not they were the next best thing), when you could not kill your fellow ubermensch. Anyhow after the destruction of the Soviet Union and topics that we cannot discuss were well underway, he wanted to invade and destroy the USA with the help of Britain. After that its basically just Germanic peoples conquer the world and form a super nation.
tl:dr
Hitlers plan (Order is not that important to Hitler, or in this listing)
1. Tame or destroy France so western boarder is free
2. Conquer east for more land, since land = more German people, and more German people = good
3. At some point ally, or puppet Sweden, Norway, Denmark, Netherlands, and the UK
4. At some point conquer Switzerland, since Switzerland sucks because (insert nazis reasons here)
5. Using the powers of Europe + the British Empire conquer the USA
7. Conquer the rest of the world
8. Do nazi things
9. ???
10. Conquer the universe?