I've been talking about this for a couple years by now. I've made several proposals to overhaul the entire Middle East and Africa. The basic answer to your questions:
1) Yes, although it was Assyrians in Iraq and Arameans in Syria. They both spoke Aramaic, but the Assyrian dialect is/was heavily influenced by Akkadian, even down to names.
2) They aren't in the game because the Mideast hasn't been updated properly since launch. It's been, as far as I can remember, mostly there as the game was designed when it was Christian-only games: simple broad strokes to represent AI groups, noting the difference in culture between Arabia and the Levant but not going too in-detail for a region meant to be conquered only.
As for the gent you're responding too: I agree. Berbers should definitely use different portraits, and their cultures should be balkanized a bit too. Tuaregs could use East African, for example, to replicate dark skin with Afro-Asiatic heritage. Levantines should use Mediterranean portraits, just as the Israelites do. Egyptians...is a tough call, I feel like a clothing pack more than a portrait back would be appropriate for them. I mean, we can't lose our pharaoh-beards, can we?
