Also, pretty sure radical Islam is on the rise because holy shit the Middle East is kind of a balls-fucked place, eh?
You can't point to a bunch of shitty living conditions and say "See, Moslem Palestinians would still hate Israel and declare Jihad even if they had modern living conditions!"
Radical Moslems support Islamism and violent jihad because they have nothing to lose and tend to live in shit situations, or their country tends to be in a shit situation, considering all the trained engineers and university student upper-middle-class members of Al'Qaeda and such. Palestinian Gazans support Hamas because they have nothing to lose and they're living in a shit situation. If you give them something to lose and help the situation rather than blockade them (Gaza) or colonize them (West Bank) then maybe the rockets will stop, eh?
(And yes, if you ask the Jihadists, they'll say they're doing it for the glory of Al'lah. Which is probably true. But if your culture glorifies jihad because of hundreds of years of colonization and shitty living, and if your only real option in life is to delve deep into religion, then it's not really surprising. Just look at the millions of Moslems living in Canada, or America, or Europe, who don't support terrorism, who just want to live their lives. And yes, I know that they do support Sharia a lot, but what kind of Sharia? Radical sharia or the old-style sharia, of local judges and such? Not saying Sharia is good because a judiciary based on 1300 year old book by an illiterate herdsman is laughable, but at least the old-style sharia wasn't "Chop everyones head off!")