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You don't think an image of Muhammad where he's wearing a bomb for a turban is derogatory?

It's controversial political speech; I wouldn't personally call it derogatory.

If I understand correctly, the reaction was to the mere fact of Mohammed being rendered in drawing, not about the content of those drawings.

It was both. The view on depictions of Mohammed differ within Islam. Insulting Mohammed on the other hand, it pretty much universally condemned.