Christians and Jews I think have it right in that we do not take our texts to the literal extent that Muslims do. However, just as with suicide bombers and radical Muslims, there are some Christian sects that do some radical things based on what the bible teaches (i.e. Ku Klux Klan).
This is a common misconception among non-Muslims. There is
nothing in the Qur'an that condones suicide, in any manner or form, even if you are capable of eliminating every single enemy of your religion, were you simply to take your own life as well. There is a zero tolerance stance regarding suicide, and as is often the case, cultural/ideological issues are confused with the religion.
Palestinians are the "pioneers" of this whole suicide-martyrdom movement. You have to remember that Fatah, earlier the Palestinian Liberation Organization is predominantly secular and nationalistic, both of which are completely contrary to Islam. The group has made mistakes in the past, such as the death of civilians.
Unfortunately, many Palestinians feel that they are in a very desperate position given their lives under constant occupation and the annexation of their land. In their desperation, they do stupid things such as committing suicide attacks and/or harming civilians because they can't reach Israeli soldiers.
This also applies to Iraqis and Afghanis who are convinced by someone or another that committing a suicide bombing is permissible. These people often receive support for their families through these actions and are convinced that they will attain martyrdom and enter paradise.
Islam is very clear that no form of suicide is acceptable, and that it is among the gravest of sins. Furthermore, the death of civilians is never permissible, under any circumstances, and the way these dissidents manage to convince people to commit such acts is by convincing them the people that they're killing aren't civilians at all. They use logic such as:
1. Israelis are all forced into military service and remain in the country's military reserves. Children will invariably grow up to be soldiers, so no Israeli occupying Palestinian land can be considered a civilian and protected.
2. Citizens of democratic governments that engage in war against Muslim countries can not be considered innocent in the conflicts, as these people have voted in the government that made these decisions.
Both of the above arguments, and others have no worth in my opinion. A civilian is a noncombatant, a person who is in no position to fight you or do you any harm.
The Qur'an is clear about not transgressing these limits.
Also prisoners of war are to be well treated. Many knowledgeable Westerners know about Saladin's great chivalry, especially compared to the European Crusaders of the time. Some groups nowadays kidnap journalists and other noncombatants, having little regard for their safety or health.
My point is, it is a great insult to suggest that suicide bombings, attacks on civilians, or anything similar is condoned in the Qur'an, and that those people taking this revelation literally are radical fundamentalists (as portrayed by some of the Western Media) and are more likely to do the disgusting things mentioned above.