"How is a "moderate" Muslim supposed to deal with this?"
Simple.
By realizing that this kind of stuff is what was told to soldiers when they asked about how to fight in an upcoming battle 1300 yrs ago.
Same as anyone who believes in the Bible must do so they don't go around plucking eyes out or killing everyone in a city.
This is the difference between the radical fundamentalist/terrorist and the average muslim. The terrorist uses passages from the Koran for his own warped means and gains.
Oh man! You must not have been hanging out on some of the Catholic religion threads then. ;-).