I can't disagree about the media angle. I will opine that it doesn't cause the reactionary behavior, but agree that it makes it spread more quickly.
I think the true cause of the reactionary behavior lies in a weakness within the beliefs of people on both "sides" of the argument. If the violent members of Islam truly believed it was a religion of peace and the right path, they would react differently. The "burning in effigy" type reactions display more fear than strength. The "nuke the ME" types show a mirror image of that fear and lack of tolerance.
Like it or not, truly peaceful Muslims are caught in the middle. It's not their fault that they're caught in the middle but there they are. They have to play a big part in fixing this. They can't do it alone, but it can't be done without them. Their participation would go a long way to proving that Islam is a religion of peace.