Q: Why do they hate us so?

A: Because we humiliated them. John Derbyshire explains in an article with the title Hesperophobia (cont.), a reference to a neologism coined by Robert Conquest of the Hoover Institute.

Derbyshire opines that the West is hated in the Orient and the Middle East because

...we humiliated them, showed up the gross inferiority of their culture. To them … we are the other, detested and feared in a way we can barely understand. Things got really bad in the 19th century. When European society achieved industrial lift-off, Europeans were suddenly buzzing all over the world like a swarm of bees. They encountered these other cultures, that had been vegetating in a quiet conviction of their own superiority for centuries (or in the case of the Chinese, millennia). When these encounters occurred, the encountered culture collapsed in a cloud of dust.

Well worth reading.