Naivity perhaps. It wasn't calculated by our esteemed leader though. He doesn't select people for honours, he just has the right to veto. Apparently:
The arts and media committee that proposed Rushdie for a knighthood is one of eight similar committees that make recommendations to the main committee, which then forwards the final names to the prime minister.
It was chaired by Lord Rothschild, the investment banker and former chairman of the trustees of the National Gallery. The other committee members are Jenny Abramsky, the BBC's director of radio and music; novelist and poet Ben Okri, who is vice-president of the English chapter of PEN International, which campaigns on behalf of writers who face persecution; Andreas Whittam Smith, former editor of the Independent; John Gross, the author and former theatre critic of the Sunday Telegraph; and two permanent secretaries, one from the Department for Culture, Media and Sport and one from the Scottish executive.
It would be for the main committee to assess any other aspects of the honour. The Foreign Office is represented on the main committee by the permanent secretary, whose job it would be to raise any potential international ramifications.