Achmed the Dead Terrorist; does this depict a Western bias?

"Achmed the Dead Terrorist"

This is a lengthy link to a comic skit by one Jeff Dunham. He's a fairly popular guy who skilfully works with puppets.

This isn't a media specific to the Gaza conflict, but I feel this representation helps to reinforce American perception and reaction to the conflict:

This representation of the of the Arab terrorist reinforces the pro-Israel stance in the American mind set. It's easier to sympathize with Israel because, as in "Achmed the Dead Terrorist", we see the Arab as the dangerous "other".

In our mind-set, there's little difference between Achmed and the Palestinians. We (Americans) see that they are both Muslim; we see that they have both committed terrorist acts. Although Israel has committed terrorism at the state level, we tend to side with it. Perhaps that is because we compare Israel to the United States, and we see the Jewish people as peaceable and reasonable (like our perceived notion of "us"). Overall there is much more we know about Jews than we actually know about Muslims.

The audience seemed to turn sour when Achmed started saying derogatory jokes about Jews. Would it be O.K. if positions were reversed, and instead the puppet was a generalized, derogatory representation of someone who identified as Jewish?