I'm not sure whether the constitution does or not, but the fact that our State and Church are separate leads us to being secular, although I might be wrong on this? Someone clarify?
Hmm, I'm not too sure as to the connection between Buddhism and Psychology, not an expert in those areas, so I won't say much.
I, personally, don't think it has to do with the recent terrorism movement at all, like sure there's hatred towards the Taliban and Sharia law, but I doubt that the general public has a great understanding of what Sharia Law even is, or what fundamentalist Islam entails. And it's not as if there hasn't been sort of tensions between "westerners" and Islamics in the past (in Australia).
I think Islam is more prone to factional division and civil conflict because there's different types, like the Shi'a and the Sunni, for example, I guess it's similar to the Catholic v Anglican tension once present in Ireland.