George Bush is right, they do hate us for our values. The distinction I would make is that they hate us for the values we practice rather than those we preach.
We say we don't do torture but in practice we do (Abu Ghraib). We say we support democracy but in practice we subvert it (Palestine). We say we support the rule of law but in practice we obstruct it (Libby, the attorney sackings). We say we support international legitimacy but in practice we ignore the United Nations and follow the dictum might is right (Iraq). We say we support Iraqis but we won't even count their dead. We say Iraqi oil is for Iraqis but we insist they sign a treaty which will mean their oil is controlled by us. We say we support the troops but we try to cap funding for their injuries.
Yes if they do hate us it is probably because of our values.
"By their fruit you shall know them"