They may not be labling terrorists, but certainly you have to admit that here in the UK we are now seeing the same situation with muslim people and the police force as there was around ten years ago with black people (Stephen Larwence case?).
Better securing any country, should not involve the random searching of people from a certin background, just because they fit the current "terrorist profile".
It's probably not the intention of the report, but the whole event in general, and the public attitude towards people means that many muslims will be labled as terrorists even though they may not be.