This is called 'taking off the rose-colored glasses of self-deception'
No I'd call it taking extreme bloodthristy verses and presenting them as something that your basic Muslim believes is his fundamental duty, and your view just does jib with the real world.
Example the last elections in Indonesia and Malaysia the radical Islamist paries got their heads handed to them.
You also might want to look at what's going on in a country called Iraq.
No one is saying that there's not serious problems in Islam but there are those who are trying to address them. Weather or not they will be successful only time will tell, if they are not Islam will end up on the ash heap of history.