Clearly Erdogan is engaging in conspiracy theories... that's pretty plain. But to imagine that the Islamic world (if you can even call it that) has some sort of lock on believing nutty things, then you're willfully ignorant. We have a whole group of people right in our own back yard who believe the current president isn't an American citizen and is in fact a trojan horse of islamo-fascist-crypto-communist through hell bent on destroying America from the inside. Some of these people are in actually positions of power within the US, so it's not just some fringe nut-jobs.... And they claim the mantle of christianity.
So when you point to a leader (who isn't entirely popular in his own country) as some sort of evidence of the inherent insanity within Islamic thought, you are indeed saying that the religion is based on paranoid conspiracies. You are ignoring the exact same phenomenon right in our own back yard. The supposedly imminent "foreign" Islamic take over, with Sharia for all, is exactly the same paranoia that Erdogan is exhibiting as Turkey's leader.
Religion isn't necessarily the problem. The problem is how systems of power employ religion as a system of power and oppression. Religion can also be employed as a weapons against oppression.