I saw Terry G over at the Nat Post bang the drums of war over this, implying that if Western leaders did not do something then we would deserve to receive more terror bombings from aggrieved Muslims.  The double standard racism involved was disgusting, and indicates that emotion is running way ahead of reason here.
There is a long complex history to ethnic/religious make up of Rhakine province but the bottom line is really what space will Buddhism be allowed to call its own. The history of Buddhism vs Islam is the latter's genocide of the former and seizure of all their lands.  The Burmese government, much like the Sri Lankan government has drawn the line at their sovereign borders: having taken so much from us, this space will be for Buddhism and its followers.