Apparently, the phrase "War on Terror" offends Muslims. Words fail.
Well, OK, not completely. Somehow, this reminds me of the (feigned?) outrage that the Democrats exhibited when President Bush talked about appeasers in his speech to the Knesset, but didn't name names. You know what? If the shoe doesn't fit, don't wear it. It doesn't really serve your cause when, in response to criticism of someone unnamed, you jump up and shout, "Hey, he's talkin' 'bout me!"
Similarly, how can Muslims be offended by a "war on terror"? Do they think that terror and Islam are inevitably and appropriately identified with each other, and inseparable? Well, if so, stupidity like this just fuels that perception.
[Update in the evening]
Robert Spencer has further thoughts on fantasy-based policy making.
Link issue
I think the answer to your question, "What doesn't" are videos of hooded men slicing open tied up victim's neck while chanting "Allah is great!" When I hear the term "war on terror", I associate it with killing the hooded men.