I agree, and you’re absolutely right about about the word Jihad. I think one of the more sad elements of this is that the Fremen were basically the only good guys in the story (in the first book at least).

My own personal speculation is that the provocative nature of the word Jihad wasn’t actually the main controversy they were trying to avoid. I think the pagan nature of the Fremen, and the depiction of Paul as the Mahdi would be far more objectionable to a Muslim audience. But in any case it shows a lack of courage from the filmmakers. Rather disappointing imo.