See, I told you I wasn't a religious scholar.
The main point seems intact, though. The Hadiths are less authoritative than the Koran. So where they conflict, the Koran will win. They may have to do what Christianity did with the Bible -- go through and decide which books should be included and which books should not. But one way or another they will ditch the baggage and produce a modern Islam.
Fundamentalists like al-Zarqawi cannot win. That's because he views *everyone* as the enemy. His particular brand of Islam considers other Muslim sects to be worse than infidels. He's like ebola -- he's so deadly and uncontrollable that he will burn himself out. It's just our bad luck that we have to endure him in the meantime.