@Altasaire you'll have to bear with me here, because my answers might confuse or offend you since the only religions I've studied in-depth are Christianity, Buddhism and Paganism - I'd like to study Islam, but I can't get my hands on Koran (not allowed) and I don't have any friends that are Muslim that are confident enough to explain the theology behind their beliefs -_-
Q1: Most religions have taken it in stride - about as well as the rest of the world has, anyway - as most major religions have moved past the magic = evil principle. Christiandom see's it as a blessing from God, much like everything else, and Buddhism sees it as another challenge to let go of earthly attachment, or else as a guide to how it can be achieved. Islam is much more divided on this: Some see it as the Christians and Jews do, as a blessing from God that should be respected and used to glorify Him, while others see it as the herald of apocalypse, with the massive devastation rogue Arms Masters are known to have committed. Well, everyone's pretty divided anyway. It's a lot more complex than what I've said of course, but I figure a summary should do for now unless you want to discuss it more on the IRC.
Q2: Very few terrorist groups are similar to our own. Noble Arms were discovered before terrorism became "mainstream" so to speak, so they've managed to grow with Noble Arms. All in all, there are different organizations that follow their own agenda, much like today, and the Hammer of the Masters are just more notable because of the amount of Arms Masters they have on their side. Not to mention they have 2 A-class Arms Masters.
Also, please get a response up so I can continue on xD