Two factors not mentioned are that Israel becomes less European and more middle eastern as time goes on. Second, Israel has what many Arabs want and shows them the way to development by example.
After nearly 60 years of development, none of the local Arab states have caught on yet. Nor does there seem to be any indication that Gaza will, but time will tell. You'll know it's beginning when the schools start teaching math and science instead of Jewhatred and jihad.