The 'free and modern' world is not so free to those shoved aside, colonized, and exploited in its expansion. I think it is that that gives rise to anger and terrorism, more so than 'anti-modern' sentiments.
For example, Iran resents the USA not because of our 'freedom', but because the USA worked to stifle theirs by overthrowing the democratic government and democratically-elected leader they once had.
Palestinian grievance is not that the world is 'modern', but that the 'modern' world saw fit to shove them aside and bulldoze their homes with 'modern' D9 bulldozers supplied by the USA.
Besides, Jewish tradition isn't so 'modern' either - especially considering that the primary argument to justify the state of Israel is how OLD the Jewish culture/religion is and how long its been around.
I don't see this as a binary option between Islamic fanatics and Jewish fanatics (or even the Christian fanatics that side with the Jewish fanatics to oppose the Islamic ones). The struggle is against religious and tribal fanaticism in all its forms, and virulent nationalistic jingoism that does more harm than good.
You can decry the Islamist Jihadist AND the Zionist settler terrorizing Palestinians at the same time.
It's also an issue of imperialism. If the 'modern' world decides that enslaving the rest of the world in a hegemonic empire is 'modern', then perhaps this so-called 'modern' world isn't so modern and progressive after all.
There's nothing 'modern' about imperialism or violent territorial conquest/expansion in the name of some religion or dogmatic ideology, whether it's Jihadism, Zionism, capitalism or communism.