That's what Bush Jr and the neoconservatives were proposing, but the US isn't overly imperial enough to carry off such a thing. It's attention span is too short, and it's too soft. I don't see the liberal countries getting together to forcibly modernize the Arab world.

We can just observe that the transition to modernity wasn't entirely peaceful in the West, and the West spread it to developing countries through colonialism.

So we can infer that modernization probably won't be peaceful in the Muslim world, if it every happens. One scenario is that Iran gets nukes, so Israel initiates WWIII against Iran and the rest of the Muslim world, forcing the West to take control of the region and to bring it into the modern world order.

But I don't have a crystal ball. My main point here is just that because of these basic structural problems, the Israeli-Arab conflict has never much interested me. The conflict's never going to end without revolution in the Arab world.