Roaming across the web, I'm noticing people (esp on the right) tend to get some things confused regarding Islam and terrorism. There are two separate issues here.
1) We have Islam, not just a religion but a blueprint for society as well, one with many noble precepts but also many regrettably stuck a few centuries in the past, with the strictures, prejudices, and attitudes of those times. As with Christianity a few centuries ago, much of Islam is slowly undergoing a self-directed Enlightenment, while some Islamic societies (esp certain Arab nations) are mostly left behind. This is an area that must be dealt with by proselytizing the democratization of Muslim nations and encouraging those gradual reforms.
2) We have the death cults like Al Qaeda. These are the outgrowth of two other phenomena: so-called "fundamentalist" sects like Wahhabism that use oil money to brainwash hatred of the West into the heads of gullible young men, and self-interested lust for power among some like bin Laden or the former Taliban who cynically manipulate the sects to try to unite Islam in a holy war -- with themselves as Supreme Mullahs of the New Islamic Caliphate, of course. These must be dealt with by capturing and killing the brainwashers, removing the regimes that permit and encourage their behavior, and demonstrating to Muslims everywhere that the terrorists offer only death, fascism and poverty, not solutions to their problems.
Only one thing will end Islamic terrorism: popular demand by free Muslims. Thanks in large part to the war in Iraq, we are seeing the beginnings of that trend, but everything possible must be done to encourage it.