I think the main reason for all that is a feeling of unfairness which is felt through middle east.
In a sense, Israel has been able to create some sort of Apartheid regime with the approbation (or at least with no reaction from western countries) while western countries never really hesitate when it comes to attack muslim middle east countries... so their is a big unfairness feeling in those populations... (and this is what extremist propaganda used... as well as less extreme one).

I guess the main stereotype how they see us, are lesson giver which can't even apply what they teach to themselves. I don't believe it has anything to do with our lifestyle. (lol just looks at Dubai... this is what they do when they have money... pretty much western lifestyle)