Yes, the most important thing here is for us to be concerned with hurting the terrorists' feelings.
Yes, but we must remember that Muslims=/=terrorists. CrabCake is right- satirise the terrorists, not the whole religion. Sadly, I am seeing some right wing outlets in the US paint the magazine as a anti-Muslim outfit that affirms their prejudiced views- never mind their strident anti-Christian views.
While it does seem their views were actually at times indeed rather disagreeable, the whole Voltairean maxim of "I may not agree with what you're saying but I shall defend your right to say it" truly applies here. This is a tragedy that strikes at all people who believe in freedom of expression, not just those who agreed with them.