Opting for a separate comment for this one:

> "Others are worse" is not the moral standard one should aspire to, either.

OP stated that all Arabs hate Israel. This opens up the debate if living in an Arabic ethnofascist state such as Gaza or a Muslim fundamentalist state like Saudi Arabia would be the better choice for those 2 million Arabs. So yes, I think being the lesser of two evils is already the answer to that binary choice.