When a positive development occurs to the Jewish people we are obligated to recognize it as a positive development and recognize the hand of G-d in it.
If the Jewish State had not occured there would have been far less Torah learning and far more intermarriage in the past 60 years.
I admit that there are some negatives, but we still must see the positives.
Even without the Jewish State (G-d forbid) the Arab lands would have become extremely hostile for any continuation of Jewish life there.
The canard that the Arab world has become so repressive only because of the formation of Israel is the cenrtral BLOOD LIBEL of our times.