The problem is this. Religious moderates are often in collusion with fundamentalists. The fatwah against Rushdie is a case in point. There have been virtually no Muslims that have decried the issue of fatwah on Rushdie, probably due to reprisals by the more extremist groups.

The idea that the British govenment made Rushdie a Knight to bait Muslims is specious.
Fundamentalist Muslims will cry injury at the slightest disagreement by anyone toward their fanaticism. In this way, it is the same attitude as we see toward atheists by fundamentalist Christian believers in the US. Or hard liner Jewish politicians if anyone criticizes Israel.

It's all the same repression.

Salmon Rushdie is a sensible and rational man of letters and has a literary reputation throughout the world. Why shouldn't he be honored instead of being castigated by an association with the Blair administration? This might be the only thing that Blair did right if he did it at all.

Whenever anyone who criticizes fanaticism or dogma is diminished by those who are fearful or religious zealots, the world is left worse for it.

Fortunately, we have not got to the point yet in the US where people are put to death for disagreement with religious or political policy. That could change if we're not careful to express our unhappiness with repression by religion or political demoguogery.