For the sake of some level of street cred

- though I am not a historian, I do try to keep up with ME history and am of Lebanese parentage with several friends/relatives who have served in the government in various capacities (and two of which have been assassinated by the Syrians - PGF and cousin).
I am Christian, but I am of Druze linage (the only Arabs to hold full civil rights in Israel and the only non-Jews to play a major part in the Israeli military). Of interest, the only non-Jew to hold the office of the Presidency of Israel was Druze (late '90s or early 2000s).
That said - I would say no to "the rise" of Israel, but probably yes to a better organized militia in 1948. The formation of the State of Israel was not a local occurrence, but was started well before the massacre which you reference. The movement for a Jewish homeland was actually begun in Europe during WWI. Unfortunately ME (and human) history is filled with massacres of Christians, Muslims, Druze, Jews, (Indians, Hindus, Armenians, Russians, Cambodians......).....so I don't think this one massacre was the nidus for the movement for statehood. Remember the Balfour Declaration in 1917?
In addition, Jews and Arabs have long lived in peace among one another. The opinion that the opposite is true is promulgated purely for political purposes. Even today in downtown Beirut there exists a beautiful and large synagogue which just underwent a major renovation. Jews lived for centuries with their Arab brothers in peace in Iraq, Yemen, Jordan, etc... and many still do.
The recent unrest (relatively speaking - since the '70s) has multiple factors driving it including the extremist Islamic interest in exterminating Israel and the US with resulting world domination as their focus. However, we cannot discount the significant hardship of the Palestinians and the continued human rights issues inflaming the sentiments of the moderates.
Will there ever be peace? No.
(Just my opinion, FWIW)