Why is Islamophobia a thing?

I know that Islamophobia is a thing, seeing the conflict occurring right now in the Middle East, 9/11 in America, and Muslims being called terrorists—but why? Islam is nothing but the religion of peace and a peaceful way of life; there is nothing terrorist-y in this religion. In the Quran, there are so many statements and verses that just prove that Muslims are peaceful.

The greeting, "assalam u alaikum" literally means "peace be unto you". Not "hi", not "hello", not "what's up, bro?", but "peace be unto you".

Muslims all have a mutual love toward each other–we're all connected, I think. I always see the Muslim brothers greet each other with wide, happy smiles even if they don't know each other, and I know as a Muslim sister that we get along together fairly well.

So I guess what I'm trying to say is, Islam teaches core, peaceful values and promotes positivity. So why is Islam one of the only religions that is being stepped upon and called a terrorist religion?