Came across this interesting discussion; i know this issue has been recycled a thousand times - but for anyone interested, this is a pretty good explanation regarding the “Spiritual significance of Jihad”. The last paragraph becomes a bit abstract (i think), but the earlier and middle paras. are relatively informative for anyone still misinformed about this particular aspect of Islam.
Just pasting selected extracts; the article itself is a bit long.
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…] To understand the spiritual significance of jihad and its wide application to nearly every aspect of human life as understood by Islam, it is necessary to remember that Islam bases itself upon the idea of establishing equilibrium within the being of man as well as in the human society where he functions and fulfills the goals of his earthly life. This equilibrium, which is the terrestrial reflection of Divine Justice and the necessary condition for peace in the human domain, is the basis upon which the soul takes its flight towards that peace which, to use Christian terms, ‘passeth understanding’.
If Christian morality sees the aim of the spiritual life and its own morality as based on the vertical flight towards that perfection and ideal which is embodied in Christ, Islam sees it in the establishment of an equilibrium both outward and inward as the necessary basis for the vertical ascent. The very stability of Islamic society over the centuries, the immutability of Islamic norms embodied in the Shari’ah, and the timeless character of traditional Islamic civilization which is the consequence of its permanent and immutable prototype are all reflections of both the ideal of equilibrium and its realization as is so evident in the teachings of the Shari’ah (or Divine Law) as well as works of Islamic art, that equilibrium which is inseparable from the very name of islam as being related to salam or peace.
…] The daily prayers (salat or namaz) which constitute the heart of the Islamic rites are again a never ending jihad which punctuate human existence in a continuous rhythm in conformity with the rhythm of the cosmos. To perform the prayers with regularity and concentration requires the constant exertion of our will and an unending battle and striving against forgetfulness, dissipation and laziness. It is itself a form of spiritual warfare.