Well, it's either terrorism or a "hate crime." The distinction rests on whether the perpetrator's motives were substantially political or not. If he simply wanted to take out his rage on Israelis, it was a hate crime. If he also wanted to strike at civilians in order to encourage a change in the policies of one or more governments, in furtherance of some cause (e.g., Islamic Fundamentalism), then he was a terrorist. It may be that not all those who hate the Israelis so passionately qualify as terrorists--the label would not seem to fit the Nazis, for example. Homicidal/suicidal maniacs may simply be so filled with hate that they are compelled to act regardless of the consequences.
Just think, if Islam wasn't the religion of love, we would be in a world of trouble. Instead of just shooting up airports and blowing up buildings, no telling what they might do.
But considering we were worrying about a 4th of July nuke in LA Harbor, this shootout is pretty small stuff.