I look upon this TL tester as more of a post war Britwank resource than a well thought out alternative history. It points out how things could have been much better without the old boy network and with merit getting credit. Some of the real world choices look more like sabotage than leadership.
Your suggestion of a pan-Arabian war reminds me that I've covered the post war conflicts very thinly if at all.
Malayan Emergency/Anti-British National Liberation War 1948-1960
(37,000 special constables, 24,000 federation police, 250,000 malayan home guard, 40,000 British and commonwealth troops) - including the SAS, three Royal Marine commandos, three Royal Australian Regiment battalions, eight Gurkha battalions, three Royal Malaya battalions and three King's African Rifle battalions.
Korea
Palestine
All with a much smaller defence budget?
Hmmm...