I think this is sort of a silly word, but I understand why it exists. It was coined by some Public Relations guy. (Some say Micheal Savage was first to use the term. Not sure on that one.) The word definitely has that certain New-York-Post-feeling to it, that agitation-propaganda feeling.
I think the word is silly because fascism is the political ideology of Hitler, Mussolini, and arguably Stalin. Fascism contains these facets: nationalism, authoritarianism, statism, militarism, totalitarianism, anti-communism, collectivism, corporatism, populism. Now, Islamic terrorists could be described as having some of these attributes, but couldn't someone have come up with a better term.(corporatism!?!)
Its like a teenager took the word Islam and hooked the word fascist to it because a fascist is "like" a mean cop or a strict teacher, and those people "like suck." I imagine what really happened is someone in PR knew that most of the working-class simply equates fascist with "bad guy" and attached Islamo as a prefix.
I think a word like Islamofanatic would be better. Not that much better, because that word is a simple label that would be abused by the same agitation-propagandists, but at least Islamofanatic makes more sense in a strictly dictionary sense.
On another note, we have a War on Terror and a site called www.assualtonterror.net, so it sort of came to me that, in context, Terror is simply the Terror of the Property Owner.
Think about it...
Also, I fully advocated the invasion of Afghanistan. Afghanistan was actually a nest of terrorist groups, including the formerly CIA-funded Taliban, and needed to be cleaned up. I think we should have gone in to that country and "stayed the course." But we didn't.