-It would probably be better to let the 'Islamic Sacred State' only control Mecca and Medina, kind of like the Vatican today. If you give them a significant amount of territory the nation would just become another fudamentalist haven.
Actually, no. The fundamentalist haven would be the Saudi area. The "Islamic State" would be dominated by the relatively cosmopolitan and sophisticated cities, and would be moderated by the need to cater to the huge international (and inter-sect) annual hajj. This is a very religious area - but religious in a much more sophisticated and less fanatical way than the wilder tribes of the interior Arabia.
In any case, anything like this plan could only happen after a series of very big and very nasty wars. Not worth even talking about.