Christians are a huge source of tourist income, the Palestinians know which side their bread is buttered, plus the Christians are no longer a threat - but things were different a hundred years ago when control of Holy Places was part of the "Great game." But the Arabs were bystanders, since the late middle ages the conflict was between the Ottoman empire (whose expansion was stopped at the gates of Vienna) and the European powers (as the Ottomans weakened, this conflict became more complex, culminating in WWI, but starting with the Crimean war and even earlier). Arabs were powerless subjects.
Jews and Christians were always second class citizens in Muslim states, subject to special taxes, and persecuted at times. But treated better than "heathens" who were forced to convert at sword point or die. One reason the India-Pakistan conflict is so volatile, for some Pakistani Muslims, it is perfect acceptable to murder Hindus as idol worshipers.
The reason for a Jewish state is simple, Jews tried to assimilate in Europe and were murdered en masse for their efforts, freed from the Ghettos by Napoleon, they thought they had become French, German, etc. So they trust no one for their protection. Try to convince an Israeli that he should trust his children's future to a secular state of Palestine which would have a Muslim Arab majority.
There is no difference between "Western Imperialism," "Ottoman Imperialism," "Arab Imperialism," "Chinese Imperialism," except the West had better technology and more wealth, and occurred more recently.
All Arab states are "Islamic states," they differ to what extent they impose Shariah law, but see the fate of apostates.
Even in Egypt, Sisi gives lip service to Islam, like the European kings who acknowledged the Church then proceeded to ignore and undercut it ("will no one rid me of this meddlesome priest?"). There are many in America, despite our Constitution, who want to impose "Chrisitan Sharian" law. True believers of any faith find it difficult to accept that their beliefs should not be universal, and when in the majority, they impose those beliefs on minorities. While Islam is more similar to Protestantism, in that there is no central authority, as the Shah discovered, there are still lines you can't cross.
Lebanon is an exception, because of the three way split between Christians, Sunnis and Shiites.
Though this is ending as Hezbollah is taking control of the country.
The problem with ISIS is they were basically an apocalyptic cult.
But watch what happens in Saudi Arabia, where a centuries old compact between the Royal Family and fundamentalist mullahs is under challenge. A violent backlash will not surprise me.
There has never been an Muslim Enlightenment, and probably won't be one for generations.
It was the Enlightenment, following the Reformation, that changed the West and allowed for secular government, but even then, only after centuries of bloody conflict and civil war (see France, the Spanish Civil War, Ireland, etc.).
As we see in Iran, many of these governments want Western science and technology divorced from the spirit of inquiry and skepticism vital to their development. Because that spirit is anathema to fundamentalists, whether Islamic or Christian.