You forget that our fearless leader used the word "crusade"...
...to describe what is sometimes called "the war on terror". He put the word in play in response to the 911 attacks. I am, sadly, not surprised that he seems to have been unaware of the historic baggage the word carries.
Also, if you believe that "crusade" should be OK to Muslims, then "jihad" (used to describe a religious struggle, sometimes armed but not always) should be OK with all of us.