What always strikes me is I got the very distinct impression while in the Middle East that it is considered very rude and in poor taste for one Islamic to criticize the way in which other Islamics worship Allah and follows Islam. It's not done.
Thus, those with very extremist views are not effected by the views of those with more moderate views. The only peer pressure is that of an ever increasingly violent mob. Those that do try to present a moderate public stance are often targeted by the extremists.
How do you change this cycle? Any western input into the cycle will be rejected violently. Any pro-western or moderate theme from within those governments in the region have to contend with violent reprisals from the extremists. How do you inject change into this?
I don't see a peaceful solution to this cycle. I would wish for western powers to look at alternatives to their energy needs, to withdraw from the Middle East. So long as we are there, we are the external threat to which all this hatred is directed toward.
If we were not there, I feel confident that internal power struggles would come to the front, much as we've seen in Afghanistan and Iraq. It won't be peaceful, but it would in effect turn the wolves on each other. Sect vs sect, tribe vs tribe, warlord vs warlord. All that hate might burn itself out. It may result in a (albeit smaller) more organized anti-western group of survivors, which could still be dealt with militarily if need be. It may even bring about a peace of sorts eventually, even if that is the peace of the grave.
But even here, Israel is the wild card.
The western nations may be able to do some work with the far east and African Islamic nations and people. There may be some ground to be recovered there, with some effort made. I just don't see any long term hope for the Middle East though.