...or maybe, maybe not.
It depends on definitions.
The lack of definitions and specificity is obviously cause for skepticism, as expressed by Jihad Watch.
My impressions? Perhaps the Islamic scholar who issued the "fatwa" should be more specific as to what he means by "terrorism" and "innocents" and so on and so forth, in order to quell the appropriate skepticism. After all, Islam does recommend "Taqiyya", which involves lying or deception. And failing to specifically define the terms of the fatwa, ie. what's forbidden, well, this could be construed as unacceptably vague and perceptively deceptive.
Obviously some clarity by the issuer of the "fatwa" is in order.
Absent necessary clarity, I'd say... meh. Fatwa, shmatwa. Yeah, right. Suuuuure.