Propaganda and disinformation is a part of the international geopolitical life.
If repeated endlessly and some actions in the international geostrategic field appear scary and leading to justifying such fears, then even educated people, who have a serious doubt of the actual intentions, can feel threatened.
Therefore, if some people have an apprehension, then it could possibly be unfair to dub them as "stupid". This fear become more ingrained if one side continues to be defeated inspite of all efforts. Therefore, the apprehension takes realtime structure in the subconscious mind and hence they believe it (such "fantasies", if you will).
This fear becomes concretised when people of authority and learning subtly manipulating the real facts to suit their convenience feed it to the people who are already worried of the consequences of certain actions and which, owing to an overdose of clever propaganda, appears real. Gul appears to be the master at this game.
Hence, it is not surprising if a large segment of the people of the Islamic faith do feel that Israel is out to capture Arabia.
Logically, Israel would be stupid to capture Arabia and have a whole lot of people who will then start making and using IEDs as a profession and not as a hobby!
The Islamic fear of Israel is understandable given the history and circumstances, though misplaced and exaggerated.