From the beginning, I think the Villagers bought into the idea that "terrorists" weren't simply bad guys who wanted to blow some stuff and people up, but actual supervillains with special powers. It's why they all seem to love Gitmo, because they think supervillains need some sort superprison to keep them contained.
Terrorists in quotes not because there aren't actual terrorists, but because not everybody the US government has labeled one and detained is actually one.
