Pope Benedict's (Un)intended Consequences?

I can't help but wondering after seeing all holy hell break lose after the Popes incendiary comments (I don't believe for a minute this Man of God didn't know the consequences of his words), if this speech is a seminal moment in the "War on Terror". In one short speech, the Pope drew a stark contrast between belief systems and their resulting actions (as practiced by today's Wahhabist Muslim).

While promoting reason, does he mean to say that the West should practice steadfast pacifism even if it means martyrdom for Christ and potentially all of Christianity? Or should Christians display their love for peace and reason by defending their beliefs even if it means picking up a shotgun or nuke or two?

What, Pope Benedict, is the reasonable thing to do? I suspect he brought up the Crusades as an answer.

Michelle Malkin has the best round-up here and here.