I've noticed that when I mention things like Kurdistan or Kashmir or even Darfur in class, some of my more devout muslim students will even say it's western propaganda - which almost always results in an ICT assignment on the topic (I'm evil like that).

I guess when people demand a more modern, more European islam that moves away from cultural traditions, they don't expect that. But that's what they'll get: these modern European crypto-islamists are not so different from the protestant movements in the christian renaissance reformation. I'm not inclined to fear any group of people too much, but I'm not a big fan of these tendencies myself.