To be completely honest, as a UK citizen (and supporter of the coalition, though a Lib Dem at heart), I actually see Liam Fox's point. That's not to say I agree with him, though admittedly the only reason I disagree with him is because I am an ardent believer in the right to free speech, and that censorship should never be tolerated (unless, you know, it's for good reason, like censoring place names and operation names in military documents made public...).
But yes, I can see Fox's point. His job is to defend this country as an MP and head of our military section, and so if he sees a threat in anything in the media, games or otherwise, that could possibly promote terrorism, then he has every right, and indeed duty, to speak out against it. In this particular case, his opinion is sadly misinformed, but I see absolutely no reason to call him out for saying what he thinks. The only reason people are flaming him over this is because we're gamers, and as we all know, gamers hate anyone who even says a word suggesting the possibility that a game, any game, should be censored or worse, rather than just ignoring that person and carrying on (which is the sensible, and thus never used, option...).