Thinking some more....

Okay, so I got into a discussion with a few people in regards to Middle Easterns, specifically Iraqis. So now I am even more confused and befuddled then I was before.
I know in the Bible when Ishmael was born (Abrahams child, with his slave) , that at that time was the split between God's chosen people and with the middle east. Okay so later on God called Saul to destroy all those people, but he didnt. Now fast forward ahead to present day. Thousands of years those people have been in conflict, and it had been God's plan to have them wiped out, but that didnt happen. So my question is, Does that make them worst than us? I mean does God favor us, and treat us differently than those people? And yes I know that some people have inherited evil in them, but that make them all a lost cause. In fact someone told me they were soul less people. I have a hard time believing that, I hate to think that God's word was only meant for some people, and what of muslims that turn to Christ, that cant apply to them. And what of muslims that marry outside their race? Would that apply to their generations? Do we just lump everyone together, and say "Those people are evil"? I do believe that God has turned his back on those that have hardened their hearts to them. But I know in the Bible it says that everyone was born with a desire to know God, so once they turn their hearts away from Him, then at that time God turns away. But because they are that race, does God not make them "fearfully and wonderfully made.."
So confused!!