When a group or a nation feels humiliated, that's when hatred grows. The problem is: it's sometimes very difficult to perceive this as it doesn't necessarily mean a call to arms.
Clemenceau pushed Germany in a humiliating position after WW1, through the Versailles Treaty in 1919, and WW2 directly resulted from the nationalism that got exacerbated by the humiliation in Germany.
During the 60's, many African countries got decolonized from western nations. My uncle had lived 15 years in Rwanda-Burundi (from 1945 to 1960) and had to return back home. He'd say the locals had ten times higher living standards before Belgium left than after. BUT that's not what the Africans wanted: they simply wanted to mind their own business, in dignity rather than being humiliated by colonials (even at the cost of their living standards). None of the former colonies have been asked back, I believe.
This is also what's going on in the Middle East: perhaps Israel is treating Paletinian better than other Islamic country would, but that's not the point: Palestinians want their dignity back, want a country of their own and not this. Israel is a democracy? Well, for jews it is. Same issue for South-Africa or Rhodesia (now Zimbabwe): the whites felt like living in a democracy, but there were many many more black Africans, under apartheid, that were humiliated. No wonder Israel was the only country the white Zimbabweans and South-Africans were allowed to visit.
It's important to understand why a group (religious, linguistic, cultural, etc) feels humiliated and let them talk about it. Solutions are always possible.
In Belgium, the flemish part had been humiliated by the french speaking side, that also had the economical power, until after WW2. Now, the situation has reversed but at the same time, the flemish got their cultural autonomy (which they asked for) and the economical autonomy (which the french speaking don't want to loose) is gradually increasing too, for each region. All this is done through discussions, never humiliation.
The moderate Islamic countries can stand a fight against terrorism, but for how long before the feeling of humiliation overwhelms the masses? Already, 80% of the people polled in the streets in Marocco have changed their mind about Ben Laden and identify themselves with him.

Raoul