Bruce, I went Googling to support your assertion that "Arab governments and media did not condemn Ahmadinejad's remarks."

The Saudis did
An Iranian paper did
A nice summary of the situation from the AP, including rejection of the comments by a Palestinian paper linked to the Palestinian Authority - although in general this makes it clear that most hid it on the inside pages without comment.

For my part, I'm waiting for a moderate BeardedBruce voice...

Graham.