Any figurative drawing is forbidden in Islam, and certainly any drawing of Mohammed, whether insulting or not, is considered blasphemy.
Nonetheless, this was Charlie Hebdo’s suck-up to Islam, even though the Muslims were too dumb to understand it. The tearful Mohammed saying (in French, obviously) “All is forgiven,” was nothing but an attempt to say “Islam is the religion of peace” in French.
I don’t really know what to make of it personally.
He is also holding a sign that says Je suis Charlie, so that is not going to make any of them happy at all.
To me, the sign being held and the title do not add up to what you are saying.
Maybe they do, maybe I am misreading it, All is forgiven, I am Charlie seems like Muhammed sucking up to Charlie.