There is both. There are highly educated, young demographic that is really pissed off about the lack of jobs and the corrupt governments neglect of investments. There is also a hungry, poor class that has also been neglected by the government. This is where fundamentalist mosques step in, provide food, clothing, and education in the form of learning the Koran. They aren't a majority, but the Mubarak government has been very effective at denying them representation.
Also, I take offense at "lets-suicide-bomb-westerners" style Islam. This is an unfair label of even the most fundamentalist sects of Islam. Suicide bombers are exactly that, suicidal, which means they aren't in the right frame of mind. Therefore they don't represent anyones views but their own. And are certainly not populist.