My take on Vatican Shadow, which I'm enjoying massively at the moment, is that while there are musical similarities to Muslim Gauze, the intent is very different. I see VS as soundtrack music to a present day conspiracy thriller. The subject, such as there is one, is Western paranoia around Al Qaeda and other Islamic terrorists, which is the great paranoia of now - if this music had come out a few years back the references would be cold war ones. The track titles, as I understand it, are all headlines, phrases or photo captions from US reporting on 'the war on terror', which taken out of context have a weird poetic quality. I see VS as musically charting this paranoia, rather than cheerleading for Al Qaeda in the way that Muslim Gauze did for the PLO. I don't get the sense that he's flirting with either Islamophobia or terrorism in the way that Death In June or Whitehouse flirt with controversy, which I always found tiresome and unpleasant.
I guess you could argue that VS is somehow 'lightweight' because it's mainly just about evoking moods of unease or urban anxiety, rather than promoting a political cause like MG, but i think it's comparing apples and oranges.