Ok I will weigh it on my views now.
I think it's important not to see Muslims in discrete categories - i.e. moderates vs extremists. Rather, we need to understand why extremism exists and accept a middle ground exists. Because if we don't understand what drives so-called moderates to extremism, we will never solve the root problem - we will only start polarising people further. This is what the current government and the media have been doing - they have been calling out the so-called minority of Jihadists and isolating them from what they see to be "good" Muslims when in reality, it is never so black and white.
Understanding different people through the lens of their own cultures (not our own!!) is important. A lot of Muslims, I think, do not want to integrate into Australian mainstream society and that's fine with me, as long as they abide by the law. Why are we so defensive about our Australian ideals anyway? Equating Shariah law (when it's used peacefully, to a large extent, in Australia) with terrorism, publicly calling the burqa confronting etc. will not bring us closer to our aims. Forcing people to integrate to one mainstream society has never been the point of multiculturalism. There was an article in The Age recently entitled (I forgot the exact title) "Why I don't Want You To Ride With Me" (in response to #Illridewithyou) is such example and we need to understand that perhaps these Muslim people don't believe in our Western, Anglo-Saxon ideals and we should judge their actions from their point of view. And although there has been a few people championing rights movements for Muslim women (such as Malala) we need to understand that these do not reflect the views of all Muslim women. Not all of them want education (even though from our point of view, who wouldn't); not all of them need Westerns to "save them".
In saying that, we should never censor our society (eg. stop satires of Muhammed) to prevent extremist attacks. And terrorism is terrorism, period. But perhaps it's time to realise that a middle ground exists - that not all terrorism stem from one single action, not all terrorism is an unprovoked attack on our ideals, not all terrorism stem from one deranged faction of society.