While your statements are correct, you play down the aparthied aspect of the West Bank occupation. The Israeli's have taken the land of Palestinian people and barricaded them in, forcing them to check in and out of the west bank like they are all criminals. That is bad, but ultimately I agree with you becuase I also look at it the other side. Israel is quite possibly the most paranoid country on the planet. It is surrounded by a horde of countries bent on their destruction; who have tried to push them into the sea in 3 different wars. They are trying to negotiate with a Palestinian government who, if it isn't in civil war, is ruled by autocrats or militants willing to use suicide bombers and indoctrination of children to further their goals. Israel is a completely democratic country with very good economic stability, even Arabs who live in Israel are allowed to vote and make a good deal more money than their brethren on the other side.
While no one's hands are clean, Israel is by far the more responsible state. The only problem is, Israel has to play down to the militants level in order to combat them. It is almost impossible situation but will improve once the surrounding nations stop pulling money out of the ground, improve their economies, strengthen their infrastructure and eventually liberalize their population's mindsets through education and general globalization. As you stated, Israel already has done that due to it's european roots but the Arab world needs to do what Turkey has done and improve thier own nations before condemning others.