We call it Islamo-fascism because we don't understand it in any way other than to couch in that set of terms.
These people, the Extremist Islamic Forces are not fascists. Fascism is an ideology based around the idea of the state as the supreme "it" to be followed in all things. It generally will depend upon racial factors, or on old "glory days" as a factor, but generally religion is far, far away on the list of things fascism cares about. And, religion is only usefull, only allowed if it meets the needs of the state.
Fascism is also about partnership. Partnership of corporations with the government in an unholy alliance. So that business, "captains of industry" can acquire with the force of government what the state's businesses cannot acquire via the free market.
By this set of definitions, especially the second, America has far more a fascist system than the Muslim Extremists.
No, Islamic Extremism is based upon Theocracy.
To the Western mind, whether European which acts as if G-d and religion and belief are quaint at best, and laughable at worst, or American, in as much that we don't care what your relligion is, and we all wish for government and religions to stay away from each other, and making choices for each other, Islamic Radicalism is alien to us.
Islamic Radicalism is about an interpretation of the Q'uran being the way all mankind is supposed to live. That interpretation is to be spread by any and all means, including the sword, until the whole world is Muslim.
The world is to be ruled by "wise men." Imams inspired by Allah, with the proper interpretation of the Quran. Men, while not on par with Mohammed, nevertheless fellow travellers on a similar path. This is the essence of Theocracy. This is the essence of what the Extremist Muslims want.
The questions of trade, military policy, normal local, national, and world politics are irrelevant compared to their interpretation of the Q'uran. We think about socialism, or communism, or capatilism. They think about the Quran. We think about internationalism, and protectionism. They think about the Quran.
Obviously, such a worldview is easily manipulated by evil men with evil intentions, but look at the history of Christianity, and you will see the parallels. Eventually Christians quit acting crazy, pulled themselves together, and advanced their cultures and society. Muslims can do the same, but only if they and only they kick the extremists out.
Every time we interfere with that process, we give the extremists ammo, and help recruit members.
Instead, let them sort it out. Yes, if the extremists win, we have a war on our hands, but by attacking Muslims who aren't extremists, we only make the Extremists look more attractive.