Why is the Middle East so screwed up?
David Fromkin in A Peace to End All Peace: The Fall of the Ottoman Empire and the Creation of the Modern Middle East addresses this question in the historical context of the Great War. This is a very readable book, well researched and referenced, that goes a long way to providing an answer to the above question.
Cynical politicians and diplomats, Great Power rivalries, power-grabs and infighting, by allies, between tribal groups and the religious of various sects all are on display in this detailed narrative. Mr. Fromkin cuts through many of the myths and legends widely held by all concerned detailing the origins of many of the contemporary problems and why the prospects for real peace in the oxymoronically named Holy Land seems so remote even today.
An interesting sidebar is the deconstruction of the legendary Lawrence of Arabia; how T.E. Lawrence was really a relatively minor player with a great publicist (American journalist Lowell Thomas) and knack at self promotion. Anybody with a desire to see how the past can affect the present as it relates to the question that opened this post should give A Peace to End All Peace a serious look.
When read in conjunction with superbly objective One Palestine, Complete; Jews and Arabs Under the British Mandate by Israeli historians Tom Segev and Haim Watzman these books provide a solid basis for understanding why the problems in Palestine seem so unsolvable.
Both books are available at Amazon through the SubSim link.
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