So...was it entrapment?
I think that seeing both sides of the "reporting"--that which was done by the media at large and that which was done by the documentary--I think it was certainly entrapment and a bit of hysteria.
However, I don't think that this case is a simple "entrapment or not" proposition. I think that it's very true that the thought of "jihad" would never have entered these guys' minds if it weren't for the informant. In fact, the informant could have easily said "bank robbery" instead of jihad and the result would have been the same. These ex-cons were "down for whatever" if they thought there was something in it for them. But again, I don't think they would have collectively decided to pull off any kind of coordinated stunt if it were not for the informant.
The purpose of an informant, as far as I thought, was to get the scoop on a planned crime and inform the police about it. Not set up a crime and inform the police about it (!).
Where it gets complicated is that these guys certainly belong away from society. Even with their low IQs, they presented a danger to us all. They were more than willing to end peoples' lives for nothing more than personal gain. And they had a history (and fantasies) of criminal behavior.
Socioeconomic factors aside, they were entrapped by the FBI informant and trapped in their own ignorance.