I would positively determine which prisoners were terrorists and which were the unfortunate innocents that were picked up in random roadblocks and searches (as swarthyguy mentioned above). I'd release the innocents, detain the ones I was unsure of (without humiliating and degrading them), and execute the terrorists.
Well, that's a step up. In your first post, you assumed them all to be terrorists. But then there's that old problem again. If they weren't executed when captured, what gives you the right to do so? And do you believe that anyone in the chain of command gave such authorization? If not, would you still do so? We don't even have to get into the degree of terrorism acts they may have committed. It's very easy to say "if they were executed instead of humiliated, we wouldn't have a problem", but it appears we just may.