If you were Satan, what would be your strategy to prevent this? It's not too difficult to formulate one...
First of all, kill all the Jews (via Inquisition and Nazi Holocaust) . Okay, that didn't work...
Next, prevent the re-creation of Israel as a nation, via Pope Pius XII applying political pressure to FDR to NOT let Israel come back to their Biblical Homeland (Here's the link to Pius's letter to FDR --
http://www.angelfire.com/ky/dodone/Pius.html
Okay THAT didn't work... Then, as a last resort, at all costs, keep the Jews from accepting Jesus as their Messiah. by convincing them that they don't NEED to. That's what the Roman Catholic Church is up to nowadays.
The pattern is grossly obvious, but to point it out is to be flamed as a "Catholic-hating bigot".
Do you seriously think that God sits in heaven waiting for people (any group of people) to do something (anything) in order for him to bring the age to its consummation? As though the realization of prophecy were conditioned on human choices?
Incidentally (and I know this won't come as a shock to you, because, as an ex-Catholic, you know more about Catholicism than any Catholic, including the Pope), traditional Catholic eschatology also believes that the conversion of the Jews (some? all?) will precede the Second Coming. (See Ludwig Ott, Fundamentals of Catholic Dogma) Not that it is somehow "necessary" for the Second Coming, or that God is "waiting" for that to happen, but simply because it is prophesied to happen that way.
The better thinkers among evangelical Christians are not dispensensationalists, and do not believe this.
"If a 'Hebrew Home' is desired, it would not be too difficult to find a more fitting territory, than Palestine. With an increase in the Jewish population there, grave, new international problem s would arise."
Wow, there's an all-time understatement. These are the words of Pius XII from the letter you dug up. They sound a whole lot more like objective, reasoned, logic to me than anti-semitism.
And don't start with the Jew hater crap with me either because now that the deed has been done I am 110% in favor of support for Israel. But because the Pope foresaw the blood and tragedy inherent in the decision certainly doesnt make him the devil that your citation presents him as.
Take your example of the Nazi Holocaust being a failed Satanic project. I can make just as good a case that it was a successful Divine project, since there are Biblical precedents (Job, the enslavement, etc.) and that the result was the reestablishment of Israel. But I won't make it, because it is silly, just like your case.