Why would people go on holiday to a Muslim country?
In 2009 we went to Morocco. We loved the friendliness of the people, the souks were facinating and full of beautiful fabrics that I spent a fortune on. The beach was very clean, the weather OK, the hotel full of character. I am keen to go again but to try Marrakech next time rather than Agadir.
In 2010 we went to Tunisia. We found it very family friendly, the weather superb, the food fabulous, the hotel extremely good and staff very welcoming. We felt there was less to do outside the hotel though.
In 2011, 2012, 2013 we went to Egypt. We are going again this summer and for Xmas. We go for the luxurious accommodation, the lovely people (the staff are generally wonderful, especially with kids), the amazing weather, the interesting history/monuments, the diving, the friendliness of the people we have met and the water parks for DD (and me - big kid at heart!). We go to Hurghada rather than Sharm or Cairo but then travel internally for the 'must-sees'
In contrast we have also been on holiday to Majorca, Menorca, Fuetaventura and Kos.
In Majorca it pissed down for 2 weeks, the hotel was crap, the staff surly and DD got D&V and a chronic ear infection. Menorca was lovely but very expensive. Fuetaventura and Kos we liked a lot, would definately return (and did look at possibilities for this year) but there was not as much for DD to do in either place so we will leave it until she is older.
That's why we do it. Hope that helps OP.