I don't know how they think. The current usage of the term is an exonym, a term which if used does not further add to that knowledge.
What that term has come to mean through that transformation into it becoming an exonym is that the term has become a slur word employed by people who appear to be anti-muslim hardliners first and foremost.
Zealots using the term to project upon the other zealots they hate.
I consider an exonym to be a useless term in any conversation I'm a party to. It's what that word means to me, means useless in addition to it meaning that it's a word which attempts to describes people who do not describe themselves to be.
An external description which is through usage is a slur upon whom it attempts to describe.