I do have to observe, however, that this is an interesting response. According to most sources (granted, they're all western, so they could be entirely wrong) the most offensive image is the one with MOhammed with a bomb in his turban, because it associates Islam with terrorism. Perhaps a better way to remove that association would be for the Muslim world to stop giving death threats and celebrating when acts of terrorism are carried out.
No, not all Muslims do this. Maybe not even a majority. But while there are a few voices (primarily western Muslims) in Islam decrying terrorism using Islam to justify itself, there are celebrations throughout the middle east when the WTC goes down. There are riots and violence throughout all of Asia when someone decides to print a picture. Really, which is doing more to create the association? Seems like there's a better place to focus energies than on a newspaper in a small country.
Again, I do have to underline that this observation was made using western (probably non-Muslim) interpretations of what's stoking the fires in the images. I reckon that there are more reasons than the terrorist association that is making people so mad.
And that editor is retarded for thinking that there would have been any other reaction to printing this. Why the heck did he think people wouldn't illustrate the book in the first place? Seriously, what is this guy doing thinking he can be a good judge of what information to dispense and how.