The Democracy Problem

Economics certainly has a huge part - perhaps predominant as you may suggest - part to play. However, we cannot minimize the impact or radicalized Islam on the region.

Radicalized Islam exists out of materialism, it exists because of the economic failure of the regimes to bring the nessecary improvements in living standards, it exists out of the failure of Nasserism to bring about a Arab revival, its stems from the secular Arab regimes being humiliated in 1967 (a major turning point for the regions intellectual history), it also exists due to the role of Islam in the war in Afghanistan, and the Iranian Revolution (1979 the most important year in modern Islamic history) it showed to people that Islam is feasible and possible to acheive through violent means (although now violent Jihad is widely discredited by most Muslims and even Islamists as a way to achieve power). The economies of the region allow for wasat or corruption, which is the biggest greviance that the people of the region have against their gov'ts, and the Islamists (peaceful or not) play on that angst of intrenched special interests at the top of the population at the expense of the lower segments. It is the opposite of the European experience where the Church was that vested interest and the people became secularized, here visa versa. They have legitimate points that it is un-Islamic to have such massive discrepancies in wealth and oppurtunity, these societies exist because we support them, and because the population is disempowered, and apathetic and usually can be bought off.

As to the successful models you point to, you can add Turkey to that list,

I don't due to the role of the ultra-secularist military in the democracy (especially considering it has thrown out Islamic parties in the past from power), the human rights abuses done against Kurds.

although do they have oil

They don't have enough to even satisfy their own needs.

also do the nations you mention have secular governments, institutions and constitutions (again not sure on all the specifics there) but that would also set them apart from many of the other so-called predominantly Muslim nation states.

No it wouldn't, the vast majority of Muslim states in existance are secular states, with secularized constitutions, and nominal democratic instituions. What lacks in the Muslim world apart from a few exceptions is constitutionalism (actually abiding by the rules of the constitution).As it stands today there are no real "Islamic states", as in Islam there is only one state the Ummah. The very existance of "states" is un-Islamic and presents a HUGE challenges to Muslims.