What would the situation in the Middle East be today if there was no Israel?

And by that I do not mean the Israel had/has gone but that it had never existed.
Would the British have given the land, spoils of war, back to the Turks or would they have incorporated it into Syria or Lebanon or perhaps created a different Arab state?
Would the Middle East still be as volatile?
Would the US still have an interest in containing Iran?
Who would have become the recipient of the majority of the US foreign aid and become our designated hitter?
Who would have become the area superpower?

Bonus question: What would the situation in Europe be if Britain had given Italy to the Jews? Would all the other European states hate them as much as the Arabs do now?