Yes, our enemies do understand the significance of freedom of speech and liberty in general, and, just as you say, that is why they oppose freedom so ruthlessly.
On some level they also understand the power of truth and that truth has its own power. And this is what they fear most.
Liberty, freedom of speech, the free exchange of ideas, the freedom to discover truth, and the power of truth itself--all terrify them because they threaten that which they most fear, i.e. that their beliefs could be untrue.
If they were convinced of the truth of their beliefs, they would not find it necessary to defend them--and certainly not with such drastic measures.
If they were convinced of the truth of their beliefs, they could relax and allow the power of truth to express itself.
Your arguments are accurate and right on point.
What we are witnessing is mass delusion and denial. The more a delusional paradigm is threatened, the more ruthlessly it is defended.
"Where is the virtue, the moral high ground in telling dictators who don't allow religious freedom that we do indeed respect them and respect the very religion that is intolerant of all other religions and free speech, freedom itself."Nowhere. There is none.