Islam is not bad, it's just that Islamic fundamentalism is a far too prevalent form and in general more extreme than other fundamentalist religions. There is no denying that there are serious problems in modern Islam, much more so than in any other major religion or with Islam previous to the last few decades. Personally I reckon that a large number of these problems are occuring purely in backlash against Western culture, a clash between liberal and extremely conservative.
The change in the Middle East does have a chance to be fundamental though, democracy generally follows liberalism and so far all the desire we have seen is for democracy - very few calls for theocracy. Even the Islamist group the Muslim Brotherhood has said that it wants both democracy and secular law in Egypt. There is true hope for a modern, democratic and secular Middle East, in that sort of Middle East there would be no problem with Islam being the dominant religion.
