Your analysis in many aspects is correct, but to think that you can just throw it on the Palestinians and save the world is not ideal to say the least.

They will never completely abandon their true power bases, groups like the world zionist organization or the chabad lubavitch make sure this never happens, they understand that fact, and with technology you need less people to manage their puppets abroad.

They do plan to make a larger and more powerful state inside not only Palestine, but to take Jordan, Syria Iraq, Parts of Saudi Arabia and Egypt (All in phases, now it's in the phase of controlling puppet rulers in those countries). And out of this state with Jerusalem as the capital of a one world government to control all goys.

I doubt this happening though, in part, similar to your point. Their strength now is that it is not absolutely complete, so they still have to hide things. Once they are more in power, more religious elements will control their decision making and believing in their fables and cult beliefs that they will bring their own downfall with their hubris.