Insane would infer that he had no idea that what he did was in any way wrong or understand the concept of the loss of life.
This guy is sane but has a twisted concept of reality, he is a dangerous and evil individual. Alas there are many men like him out there ready to do the same again and again.
Islamification will probably prove less relevant than some fear as the West becomes more and more secular and an individual's myth of choice becomes of minor consequence.
As for Anders, he is either insane or trying to appear so. No one in their right mind would contemplate being aquitted would be the correct course of action after what they did. And in fact it ought to matter little anyway. Someone capable of doing what they did can not be allowed back into society regardless.
I don't think being insane necessarily means you have no idea or control over what you are doing. Im no psychologist but there are many different variations of insanity and in my mind he must be one of them. To have those beliefs and the desire to carry out those actions is one thing but to actually carry it through - I'm not sure how any totally same person could beging to justify that.
I heard one of his victims say the other day she would prefer he was incarcerated in a secure mental unit. Not because he might get psychological treatment but becaue that's where he doesn't want to go. I sympathise with her hopes.