i'm still puzzling over the cartoon response

now, i'm not the smartest dude walking. i'm not stupid, but there are folks out there that are way sharper than i am. so here i am, puzzled. maybe one of you genius types could help me understand.
the islamic world erupted when there was an unsubstantiated rumor of guards in gitmo flushing koran pages down the head. and there is still violence surrounding the publishing of the above cartoon of moe.
now, here's my dilemma.
why isn't the entire muslim world in flames over this image? why isn't the islamic world rushing to iraq to turn the place upside down until they shake the perpetrators of this outrage loose? there are repercussions in iraq, but i don't see the world-wide outrage over this bombing. i guess i'm just confused, and too stupid to see the difference between a cartoon and a bombing.

and then there is australia. i love that place. those folks have been some of our staunchest allies, and with a few exceptions, like taking everyone's guns away, i would live there in a heartbeat. this country and it's citizens are unapologetically patriotic, and are not afraid to get in anybody's face if necessary.
case in point

A senior member of Australia's government has suggested Muslims who do not uphold the country's values should be stripped of their citizenship.

Remarks by Finance Minister Peter Costello, at a conference in Sydney, have sparked anger among leaders of Australia's Islamic community.

They have insisted his comments were divisive and inflammatory.

Mr Costello said migrants who did not respect Australia's laws and traditions should lose their citizenship.

read the whole article here.