Exactly this ^ Coys
Plus it's much more convenient to use the Israeli/Palestinian conflicts as a way to distract your angry populace so that their anger is not directed at you for running their country in a less than ideal way (generally speaking), and with little or no civic rights.
The core problem in the Arab world is that they refuse to accept that Israel exists as a real country. That's why they keep referring to the "occupation" and the "occupiers"/"aggressors". Once they come to terms with that and realize that it's there to stay then there will be peace. As __Q__ stated before in this thread, 5 million Palestinians and 5 million Israelis are not going anywhere.
They both have to acknowledge each others right to exist and have an independent, secure state and right to self-determination.
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