RE: the word JIHAD, religious terminology can be complicated. JIHAD means something different depending on whether it is used by an Islamic scholar, an extremist or fundamentalist, a western journalist, or your average practicing Muslim.
With that in mind, in many contexts the word JIHAD really does mean struggle. It can be used in a symbolic or religious sense (the struggle with the mind to be a good Muslim) and not necessarily in the sense of an actual war. So, for me, the clue for JIHAD was not PC, just a different usage.
As another example, think about the word "avatar." When I see it I think of an incarnation or manifestation of Vishnu. In fact, RAMA was clued that way in today's (Nov. 6) LAT puzzle at 63 Across. But most folks only know the word avatar either from the movie or as a computer term.
And what about far more common religious terminology like icon, guru, or even saint? (think New Orleans football) Those words all started out with very different meanings but usage has evolved over time.
Okay, this got pretty long and rambling, but I hope it was at least somewhat interesting.
PS. For an interesting take on what being PC means do a search for Guante and a visit from the PC police.