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The problem goes beyond Hamas and Hezbullah. The Arab nations need a safety valve for their population's anger. If there's no Israel/Palestinian conflict, then their population might turn inward to look for the cause of their lack of progress. With Israel/Palestinian conflict, the despots can blame the US for oppressing the Palestinians, in turn, oppressing all Arabs. Because we all know the US is the big satan.
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"Only Nixon can go to China." -- Old Vulcan proverb.
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