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Originally Posted by Ledgem
There are many sentiments within the populace that are not born out. There needs to be a level of organization and, usually, monetary backing. Without those two things, you'd essentially have disorganized gangs. That's not very effective, particularly since they might fight with each other. (That's likely also another reason for many of these groups' anti-Israeli rhetoric - if peace extends too far, people within these groups may not remain united.)
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Disorganized gangs can still be troublesome.
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Oil pipelines and fields are extremely vulnerable targets, and now that many of these countries are wealthier, they are more averse to provoking conflict. Israel has shown that its military is quite capable, and it's a poorly kept secret that Israel is a nuclear power. Perhaps if all of the Arabic nations united together they could overcome Israel, but why would any one of them want to risk damage (or utter destruction) by attempting such a thing?
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I doubt there'd ever be an outright conflict, but the threat of one could force Israel to compromise. When enough forces are aligned against it, the Israeli government will be forced to comply. Heck, look at the Suez Crisis and how the US stopped Britain from seizing back the Suez canal by threatening to destroy completely destroy the pounds value.
Likewise, if enough countries are dissatisfied with Israel, they'll simply get Israel into a position where they'll have no choice but to comply.
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Things can get worse for the militants. Also, as you're probably aware, the suicide bombers and such tend to be low-level members of these groups. When is the last time you heard of a high-level group member committing suicide? They're always caught or captured, even when the odds are seemingly completely against them. I think that says something about their desire to live.
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Thing is, a suicide bomber doesn't need that much organisation behind him. Bombs aren't that hard to make yourself. Even if the top level is eliminated, people could continue to bomb.