I didn't hear about this. As far as I know terrorists can still be called terrorists.
BBC edits out the word terrorist
The BBC has re-edited some of its coverage of the London Underground and bus bombings to avoid labelling the perpetrators as "terrorists", it was disclosed yesterday.
http://www.telegraph.co.uk/news/main.jhtml?xml=/news/2005/07/12/nbbc12.xml
It is already known they are Muslim terrorists, why should their be a need to advertise the cause these terrorists want to draw attention to?
Because they are not fooling anyone by avoiding the word "muslim" in this context. The muslims know who these terrorists are, so do non-muslims. By trying to avoid mentioning what is obvious, accurate and unpleasant the British government and media project weakness and the ostrich qualities of head in the sand, not sensitivity. At least that's how it's perceived by the muslim world. Interestingly the brits don't hesitate to discuss "Quebec separatism", "american imperialism", "the Christian right in America", "Russian Nationalism" or "the Zionist occupation/aggression". Somehow they are not concerned that they may upset the French Canadians, the Americans, the Russians, the Christians or the Jews. Yet calling a spade a spade with regards to muslim terrorism is a tabu.
What purpose does it serve to distinguish the terrorists as Muslim?
Accuracy? Moreover it's important to make sure that these so-called moderate muslims realize that we still have the guts to call a spade a spade, they need to realize that we know that terrorists are coming from their midst and that it's therefore primarily their job to clean up their [muslim] house. So far these "moderate" muslims have been at the very least complicit and in many cases openly supportive of terrorist activities and methods, why would not they if they know we don't have the guts to even point finger at them.
I believe the Holocaust has a place in being taught in history but the question does bear asking why is it that the Jewish Holocaust is a staple of the school curriculum but not for example the atrocities the Japanese committed in China? Or why not a more current issue: The Israeli-Palestinian conflict?
No one would object to that of course but there is one unique feature associated with the Holocaust - unlike other examples of atrocities and conflicts you mentioned, during the Holocaust one nation was openly and deliberately trying to completely exterminate another nation, an entire extremely efficient industry of murder and extermination was built. That's why the Holocaust is in a league of its own, not because it's about the Jews.
The basic thrust of your post seems to suggest that Muslims are being given special privilidges.
Not exactly, my point is that the Muslim world is quickly becoming an international bully, radical Islam is sperading like cancer and it's just beginning to flex its muscles. The brits appear to be unwilling to stand up to this bully.
Instead the brits are bending over backward more than any other nation (even more than France) to please the bully rationalizing every concession, betraying one principle and one friend/ally at a time and hoping against hope that the bully will be placated and go away. The Europeans tried that with Germany in the 1930s. It won't work any better this time.