I didn't see this movie, nor do I want to. My mother saw it when it came out and said that if the mainstream American audience saw it, we would be in real trouble. Yes, as you say Sis J, it didn't portray us in a good light and yes, I think it is Saif's character who ends up being a terrorist. My Name is Khan did a much better job of showing the plight of us American Muslims and what situations we go through, which is unique compared to our counterparts, though maybe the UK has some taste of that after 7/7, but I think just for the fact of being in the US, the situation, has a "mind" of it's own.
I've even gotten some comments about My Name is Khan and how it at least gave some outsiders as to how things are in America or additionally, my Muslim friends here, who are from Malaysia and other nations, have at least asked me how it is here, both those who have seen the film and those who haven't.