At least in East Germany they didn't skin each other alive and tear down all trace of civilization. The task to raise these people above their cave man status would be a huge undertaking and not workable as is obvious by their past. They seem to rise to a certain level, then because of some spiritual, dark, defeatist, "something" they slide back into war and self destruction. So far they don't seem big on understanding cause and effect, their comprehensive reasoning takes on more cunning than reasoned intelligence, with no issue of right or wrong, fair or unfair, just or unjust coming into play at all. That is just my observation but it indicates to me a pretty hopless situation.
As many have pointed out, the Middle-East is stuck in a time warp circa 600 AD. I scratch my head and wonder if this is a cultural or a religious phenomenon, considering that the Coptic Christians of Egypt seem to be just as stuck in the seventh century as the Moslems. But given the peaceful and loving nature of the Coptics compared to Islam's hatred and jealousy of the West - I'd have to say your analysis was dead on.
Change out East Germany for Nazi Germany, or Imperial Germany, and the same ruminations have been around for a hundred years. Wilson & FDR both hated the Germans for the same reasons you cite. And, as history has shown, it was bigotry and little else.
A free press and a elections will not change everything overnight, but by giving them new incentives and new ways to resolve their grievances, I'm sure that within 20 years they'll take off, much as Taiwan and China did when they finally got leadership dedicated to making much of the country.