Yes, the reaction to the threat of terrorism is worse than terrorism itself, except in actual attacks where casualty counts become a reality.
I'd personally like to see the media take a more responsible role by not hyping the terrorist threats. I'd also ask that they stop detailing how to accomplish such attacks. It's more than stupid and irresponsible journalism. It's downright dangerous.
One way of preparing for an attack is to try to anticipate what the enemy could do to us. If we think about our vulnerabilities and discuss them, people in a position to do something about it could be prepared.