When we invade other countries we should understand how it will be interpreted by them, not how we will explain it away. Walking up to a gang member and saying "what" can get you killed. We won't do it because we know how it may be interpreted and you may end up dead. We seem to have a blatant disregard for other country's perception of us because we know they can't hurt us.
We can explain all day why we went into Iraq but we should take responsibility for their interpretation of it...just like with the gang member.
The difference is Bush was speaking to the US people not to the Muslim world. I agree with your point completely, except for that. You walk up to your friend and say "what" even though a gang banger may be in the neighborhood.
"Fortunately, I keep my feathers numbered for just such an emergency." Foghorn Leghorn