Israel has NEVER been at war with the entire Muslim world. Israel enjoys good relations and a strategic alliance with Turkey. Israel enjoys good relations with Mauritania. We have peace agreements with Egypt and Jordan. I don't ever seem to remember hostilities between Israel and Indonesia, the largest Muslim nation on the planet.
My guess is the reason that Indonesia is not at war with Israel is they are out of range. Moslems are in a state of perpetual war with anybody in range, even other Moslems.
After all, most of the car bombs in Iraq are Muslims bombing other sects of Islam. Attacking Americans is just a sideline for them.
Then again, can you name an Islamic country that hasn't endorsed the idea that "Zionism = Racism?" It's good to be hopeful, but the Muslim world has many miles to go before we can take "peace in the Middle East" as close at hand.