I think most people would agree that the "ideal" way to combat terrorism is through preventative measures. Identify potential conflict hotbeds and help people settle their differences peacefully before they start pounding on each other. That said, evildave, there will always be cases of terrorism that can't be fought that way. Where no amount of air time or outside help can eliminate the problem, simply because there is no compromise that will satisfy everyone. (Close-by examples: pro-life vs. pro-choice, veganism vs. the meat industry.)
And then we have to deal with a very basic human drive: when you realize that a matter you feel strongly about will probably never be settled to your liking, you start grasping for the kind of straws that will at the very least drag other people down into your misery. Depending on the context and culture, it can be flame wars, obstruction, excessive litigation or violence. While your formal target is of course your opponent, it's always a bonus if, when he retaliates, he also lashes out against an innocent bystander. Because then other people will see him for the bastard you know he really is. Now, don't try to deny it. We all get these impulses from time to time.
I have no idea what would solve this, frankly, short of some "Prozac for the disenfranchised" program. But one thing is for certain, rikzilla, Grammatron, et al -- if you are going to use force, it can't be the bull-in-a-China-store approach we've seen so much of lately. The US, Israel and Russia all have horrible track records and seem to create two new terrorists for each one they kill or capture. (Which would be fine if they had unlimited defense budgets and their goal was to wipe out an entire ethnic group. Sometimes I'm not so sure.)
I mean, have you ever wondered why Palestinian terrorist organizations keep mounting new attacks against Israel, despite having been shown month after month, year after year, that this will only lead to retaliation with even more people killed and more innocents suffering on the side they claim to fight for? Is it because they never learn? Or because they think that this time it will be different? No, they know perfectly well what is going to happen. And deep down they like it. The more innocent Palestinians who get killed, the more people will hate Israel and follow in their footsteps. Hatred is their legacy. Again, this isn't unique to terrorists.
Yes, yes, it can be argued all day that the people the terrorists fight in the name of ought to see through this and rightly blame the terrorists for their misfortune. And many do. But that requires an intellectual effort. It's easier to hate the side that killed your child than the one that provoked them. Especially if you got no apology whatsoever and it's the latter side that offers you its sympathies. This is something the proponents of the War on Terror must take into account. Tread lightly.