The Arabs would rather die than see Israel established because behind all of this, as always, is a spiritual issue: in this case it is the devil who has always hated Gods people and wants to wipe them out. The solution is to show the Arabs strong and determined resistance. It has been shown that when these terrorists are met with determined, deadly force they go back to hide in their caves for fear.
I think it has nothing to do with Ismael and everything to do with the Jews’ refusal to accept Mohammed as a prophet of God.