Technically, according to Islamic practice, the Koran cannot even be translated. The few groups (such as the Sufis) that have tried to do a metaphorical interpretation - which is what Christians and modern Jews do with the more aggressive passages in the OT - have always been condemned as heretical.
The New Testament is not a problem in Christianity, because there is nothing in it that is evil, and the few things that could provide room for obsession (women keeping their heads covered, for example) are simply cultural things related to the culture of the time. Since Christianity develops, it is not tied to forms of dress.
The OT is not a problem either to Christians or Jews, because the truths that are in it are very obvious, and the historical/cultural things (such as dashing the children of your enemies upon the stones) are also obvious, and it's easy to separate the two.
The big difference is that Islam is a false religion, and Judaism and Christianity (although they conflict on whether or not the Messiah has arrived) are not.
You are absolutely correct.
And by the way, on the larger point, it seems to me that most of the West is unable to find the words to respond to the current crisis posed by militant Islam. We in the West just stare at the horror, the intractibility, the boldness, the sheer strangeness of a religion and culture that seems at the same time suave and cruel, subtle and monolithic. But also fundamentally flawed and violent. Read, for example, what Hilaire Belloc or GK Chesterton said about Islam--very prescient stuff.