I have posted this elsewhere but wanted to amplify more of Bruce Schneier's CNN article from which:
Since 9/11, we've embarked on strategies of defending specific targets against specific tactics, overreacting to every terrorist video, stoking fear, demonizing ethnic groups, and treating the terrorists as if they were legitimate military opponents who could actually destroy a country or a way of life -- all of this plays into the hands of terrorists.
We'd do much better by leveraging the inherent strengths of our modern democracies and the natural advantages we have over the terrorists: our adaptability and survivability, our international network of laws and law enforcement, and the freedoms and liberties that make our society so enviable.
The way we live is open enough to make terrorists rare; we are observant enough to prevent most of the terrorist plots that exist, and indomitable enough to survive the even fewer terrorist plots that actually succeed. We don't need to pretend otherwise.