So a petty terrorist would have been a better villain? What kind of challenge would that have posed for Stark?
Because he was being built up as an even scarier version of Bin Ladin-- who could blow up Tony's mansion on a whim, hack into our computer systems, kidnap and murder people on live television, and cause massive explosions without leaving a trace.
You weren't sure how
he did what he did, and it got you thinking that maybe he was more than just a standard terrorist, and maybe had some kind of otherworldly power or ability we didn't yet know about.