Bad generalisation here. Not all Palestinians are terrorists. It is wrong to use the term terrorist as-is, and NBC are being rightly cautious and quoting the Israeli PM's office. But of course Ehud Olmert's office will call it a terrorist attack, seeing how he needs some political help right now.
BBC says "Police said he was a 30-year-old from east Jerusalem who had
no known affiliations to militant groups."
This man, albeit Palestinian, was apparently also an Israeli citizen: "The Israeli newspaper Haaretz said the driver held an Israeli identification card and had a criminal record."
A glance at the more recent headlines from different news sources shows not a single one uses the word "terrorist" in its headline:
Deadly Jeruselem bulldozer attack — BBCPalestinian goes on rampage in Jerusalem; 3 killed — Boston GlobeDriver rams bulldozer into Jerusalem bus; 3 dead, dozens hurt — USA TodayDriver rams vehicle into Jerusalem bus, killing 3 — LA Times3 Dead in Jerusalem Bulldozer Attack — AP/TimeThree militant groups claiming the attack — which almost certainly means none of them did it and are just claiming it to show off — but the Israeli police believe he acted alone.
It doesn't appear to be a conventional terrorist attack, for sure.