There are all kinds of reasons for forming a Middle East Union and only one reason I can think of not to -- what would they call their coins? The Mido?
Imagine a European-Union-type state stretching all the way from Morocco to Uzbekistan. Condoleeza Rice -- and Hillary Clinton too -- might be forced for the first time to think twice before screwing with the MEU.
Sure, Saudi Arabia might complain about losing a bit of sovereignty and having to deal with Iran. The Taliban would get all upset about not getting to live in training camps any more. Egypt would probably be sad to lose all that bribe money from the US. The Shias and the Sunnis would have to kiss and make up after almost 2000 years of fighting and feuding. The Turks and the Kurds would have to learn to play nice. And George Bush and Rahm Emanuel would be pissed off. But other than that, just look at the advantages of having a MEU -- no more genocide in Gaza, no more brutal occupations, no more oil exploitation, no more Shock and Awe.
Get your act together, Middle East. Become a force to be reckoned with instead of just a bunch of weak countries waiting to get picked off one by one by oil barons, CIA-sponsored warlords and real estate agents; like sheep bleating helplessly and silently wondering which one will be next....