Arabs, and some of the the rest of Muslim World, 'Turned on their TV sets' in the second half of the 20th c and realized they were failures and Backwards. We, and especially Israel in their midst, stand an ongoing and tremendous Humiliation to the Arab/Muslim pride.
Arabs have a culture deeply rooted in 'Pride and humiliation'.
This complex must be considered in any dealings in the area. Also called placating the Arab 'Street'.
One of the problems in 'Palestinians' not accepting any deals offered for statehood has been this idea of losing face/pride.
Unable to accept anything less than 100% is just too much for them.
America's biggest problem with those in the area is not Israel, but a successful free country having proved Islam is mebbe not all that Big Mo says it's was cracked up to be. America as well, founded by Enlightened Christians, not Holy Book hang-ups/Koranic literalists, but men who were able to distinguish and guarantee what was fair for all.