Slavs were definitely a favorite target of the Nazis.
Anyway, I'm not sure about the specific outcome of the incident or the collaboration of Bosniaks, but I do know that Himmler was indeed a critic of "soft" Christianity and praised Islam for its masculinity and martiality. I also know that Hitler romanticized it enough to ally with the Persians--the original Aryans (hence the name "Iran": "land of the Aryans").
But back to Serbia. I do know that in the fascist Independent State of Croatia (which was actually a puppet state for the Axis powers, who occupied the country and then propped up the Ustae movement), Slavko Kvaternik demonized the Serbs because of their repressive Yugoslav king. Also, at the time, its boundaries included what is now Bosnia. I don't know what was up with the Bosniaks, but I do know that the Ustae envisioned the following plan: kill 1/3 of the Serbs, "convert" another 1/3 to Roman Catholicism [at gunpoint], and expel the rest. Not sure how far they got on this before we went in and kicked their *ss*s.
I may have been wrong on this: it was actually "Kill 1/2, convert 1/4, and expel another 1/4." It is difficult to tell just how many they killed in actuality. A whole lot of people died on that continent, after all.
I know the Nazis hated Slavic people, just as much as the Jews. Many Slavs were killed by the Nazis, even more then Jews I have read. The funny thing is that Slavs are more likely to be blonde hair and blue eyes, more so then the Germans. As for Nazis wanting to ally with the Persians, that does not surprise me. Iran is Farsi for Aryan. I know many Nazis fled to Iran after World War II. I believe mostly SS and Nazis collbarators.