If you do back the Muslims who appear moderate, you get Arafat syndrome. They've got the deck stacked, because they don't consider us to be human beings, and anything goes when dealing with us.
He's lying through his teeth. Islam a religion of moderation? In what? Moderate beating of wives? Moderate in execution of rape victims? Moderately letting schoolgirls burn to death for fear their ankles would show? Moderately raising a generation of suicide bombers? At the very same event at which he is speaking, they're stoning Bush, Blair, and Sharon as the Devil!
You can find this very same speech from countless imams, Islam is peace, Islam is moderate, Islam does not encourage terror. But when that say that one day out of the year and the other 364 are about how you are commanded to kill the infidel in the name of jihad, it is not representative nor moderate to pick out the one thing he dissimulates for the infidel's consumption.
Until we see actions - removing imams who preach terror, for example, would be a good-faith start, or declare terrorists to be apostate and not merely misguided, and mobilize their followers to seek and punish them - then this is certain to be taqqiyah, the Islamic doctrine of lying to the enemy to gain advantage over him.
Even the socialist People Liberation Army of Palistine has no problems cooperating with the radicals and using their tactics.