I don't want to sound too confrontational, but I disagree with several of your points. For one thing, nearly every culture on earth can be labeled "macho" in one way or another, so saying that Arabs and Israelis fit that bill doesn't really tell us much. As for the desperate poverty, I'm not buying that either as a causal factor. When Israel was founded, every country in the region was rather poor, although there was little contact with richer nations and thus little reason to feel envious or inferior in comparison. The region stayed damned poor for a long time, and it is only the oil wealth in Arab countries and the recent development of a modern economy in Israel that has brought about any contrast between rich and poor. But the seemingly endless nature of the conflict long predates those developments.
As for the large number of unemployed men, again,m this is true now (and does contribute to the problem, definitely), but was not always such. At the time of the 1967 war, for example, Saudi Arabia's population was one-fifth what it is today, and growth in other Arab states was just beginning to take off. And yet, the seemingly endless nature of the conflict was well established, anmd could easily have gone on even without the massive population growth in the region. Anyway, you're right about all these things making it worse, but this conflict was destined to go the distance long before these conditions came into being.
Not-So-Fun fact: At the end of the Second World War, Syria's per capita income was roughly equal to South Korea's. Today it's about a fifth as much.