Scheuer did not advise any of that. Go back and reread Frum's article. Those are bin Laden's goals.
In Scheuer's case, Option C turns out to be a policy of averting terrorism by figuring out what the terrorists want, and then giving it to them. Such a policy of — shall we call it "conciliation"? — is feasible in Scheuer's opinion because Osama bin Laden and his Islamists are guided by defined and indeed "limited" goals:
First, the end of all U.S. aid to Israel, the elimination of the Jewish state, and in its stead the creation of an Islamic Palestinian state. Second, the withdrawal of all U.S. and Western military forces from the Arabian peninsula — a shift of most units from Saudi Arabia to Qatar fools no Muslims and will not cut the mustard — and all Muslim territory. Third, the end of all U.S. involvement in Afghanistan and Iraq. Fourth, the end of U.S. support for, and acquiescence in, the oppression of Muslims by the Chinese, Russian, Indian, and other governments. Fifth, restoration of full Muslim control over the Islamic world's energy resources and a return to market prices [sic], ending the impoverishment of Muslims caused by oil prices set by Arab regimes to placate the West. Sixth, the replacement of U.S.-protected Muslim regimes that do not govern according to Islam by regimes that do. For bin Laden, only Mullah Omar's Afghanistan met these criteria; other Muslim regimes are candidates for annihilation.
We've all heard this list before; what's new here is a senior U.S. counterterrorism official agreeing that the demands included on it can and should be met. Yet so Scheuer does: "We can either reaffirm current policies, thereby denying their role in creating the hatred bin Laden personifies, or we can examine and debate the reality we face, the threat we must defeat, and then — if deemed necessary — devise policies that better suit U.S. interests."