Don't you think that the reason why the Muslim-majority countries are failing and losing to Israel and the core anglosphere countries (the West) is because Allah (swt) has willed that the end times are comming soon? One of the signs of the end is that there will be loads of Muslims, but that they will be as powerless as the foam on the sea, which is pretty much what is happening now.
Chaos like this means people want to change things, and these people cause revolutions. And the best revolutionary of all will be the Mahdi, insha'Allaah!
So in conclusion, I believe that Allah (swt) does want this to happen to the Muslims, and that it doesn't necessarily mean that Judaism and Christianity are the true ways.
I just checked Quran 3-126 in both my translations. Neither of them say that victory comes only form Allah, although I'm sure that is an Islamic belief.