Ian,
You're right on all counts. It is also a two-way street. Arab governments, must stop their "kill the Jews" and "drive all Israelis into the sea" rhetoric.
Many, many Arabs were stunned by the last Bin Laden video in which he claimed responsibility for the 9/11 attrocities. They believed what they had been told, which was that 9/11 was an attack on America by the Jews.