You cannot judge a people to be "talentless" without taking in the context. And you cannot/must not ignore the context in this case. It is not these peoples' fault that they are unable to start the next facebook/twitter/whatever, you have no idea how difficult it was for me to accomplish what I did here. People here will put the same amount of effort as yourself, if not more, and not succeed simply because of the environment they are in.. it takes a lot of work to break away from the layers of obstacles in the way and makes something that can be appreciated by people like yourself.
In answer to your question: Yes, there are. Everyone at Genie-Soft is a talented hacker. I've met dozens of hackers at tech meetups and at conventions sponsored by Google and Microsoft. If you're predisposed to not see these people though, they are easy to miss.
The question is if there are more people like you there. I think you can find a good programmer in any region, but there needs to be a good amount of them in order to create something substantial. So I am yet to be convinced that it's a myth that there's a low amount of talent in Palestine.