No one said “it would be just fine living under Arab rule.” In golus no where is pretty or fine for Jews. Yet nothing you brought, as horrible as those events under the Arabs certainly were, disputes that living under christian rule was far worse over time. Both long ago, as the many events I’ve cited, AND recent times, as the European holocaust alone demonstrates.
As far as Jewish rule, aside from the many halachic concerns, on the practical level we see a state of constant wars, terrorism, suicide bombings, rocket attacks and a state of constant war. Even compared to areas of non-Jewish rule where Jews reside, it is less safe under current Jewish rule.