Islam sits uneasily in a world divided into nation states.
That is a problem which has nothing to do with the problems caused by SECULAR groups like the PLO and SECULAR leaders like Nasser and Saddam Hussein.
The possibility of an Arab state was undermined after the defeat of the Ottomans in World War I, especially after OIL was discovered.
Emir Faisal dreamt of an Arab Empire living in peace next to a Zionist state. But secular Arab nationalists (and Syrian nationalists) undermined his efforts.
The West, for its own purposes, advanced the claims of camel keepers like the House of SAAUD and backed despotic kingdoms and emirates in the Arab world.
The Saud issue is true, but the Hashemites were just as backed by Europeans as the Saudis. However, because of problems in Europe and America, especially since the 30s, neither side had much backing from anybody.
The Arabs did not have leaders who could speak for them and in that confusion in 1948 Israel was established.
The Arabs had lots of leaders: Nasser, al-Husayni, Aflaq, the list goes on and on. Those leaders were very vocal.
The problem was that the Arabs listed to those leaders.
I have stated several times in my previous posts that the Palestenians were betrayed by their fellow arabs.
Well, they should have listened to the Jews then, shouldn't they have?
It worked out well enough for them though. The very real betrayal you speak of is now called "ethnic cleansing" and it's the Jews' fault, obviously; and the "refugees" got more money from the UN than any other group in the world, while the Jewish refugees from Arab countries, who outnumber the "Palestinian" "refugees" got NOTHING.