Of course it's terrible, but to blame us for terrorists wanting to attack is a little off-base.
Maybe he just meant that it's fodder for their propaganda.
It's hard to convince the Islamic world [and the rest of the world] that we're "the good guys" when we seem to be going down the entire list of techniques used by the North Vietnamese (and the Nazis, Spanish Inquisition to a lesser extent). Pressure points, waterboarding, sleep deprivation, and extreme temperatures are already horrific enough even without this British report of rape and whatnot that the White House is denying.
So it's hurting us in the War on Terror.