(The observation made in this news clip seemed so obvious, I wondered why I hadn't thought of it this way myself.)
Speaking before the conservative Heritage Foundation (the only place left on Earth that still thinks Bush is doing a great job), President Bush again refers to his "War on Terror" in religious terms. Naturally, Muslims can't help but interpret this as a "holy war on Islam".
Contrast this to the UK, where the phrase "War on Terror" is banned altogether as nonsense. Divisive and unhelpful.