Okay, I've gotta give it to Malkin...

YOU ARE VISITING THE OLD MALKIN(S)WATCH. THAT'S FANTASTIC. PLEASE VISIT THE NEW MALKIN(S)WATCH WHEN YOU GET A CHANCE.

...this is really dumb.

I'm no munitions expert, but that certainly doesn't appear to be a missile of any kind.

Update: Via Chad in comments, Maha, a diarist at Kos:

But the good news here is that because (I trust) there is one fake staged photo, the entire news story about 18 innocent people being killed has been cancelled. The villagers were faking the story; they were probably lying about not hosting al Qaeda also. We can now dismiss the whole episode as so much spin, as if it never happened. I know you are relieved.