I don't argue your interpretation of the Reformation though I'm not entirely certain I agree. In any case, my suggestion for confronting the evils of Islam was to attack its centers of extremism and destroy them utterly. The sooner the better, especially before Iran goes nuclear. What is your's?
Oh, that's my solution, too. My point was that in Christianity, reform means divesting itself of the political; after the Reformation, there were a number of Protestant state churches, but over the years, other smaller churches spun off and set up churches that were not state power-based (ranging from Nordic pietist churches to the Wesleyans and the Quakers in the English speaking world). Among Catholics, this type of reform movement was usually expressed through the founding of new religious orders or lay movements, although sometimes larger scale institutional reforms were undertaken. The difference from Islam, however, is that with Christians, reform means going back to the non-violent, non-state, charity-filled origin of Christianity. In the case of Islam, it means going back to the violence, power-lust and rigid control that is at the origin of Islam.
I think the only way to do it is to destroy Islam. The question is how. We have innocently thought of it as just a religion like any other, because for the last century or so it has only been powerful enough to carry out random terrorist actions; but the situation has changed now. The only thing Islam seems to like outside of the 7th century is modern weapons and destructive technology. Personally, I think that we will someday have to destroy Mecca, home of the black rock that is the cult object of Islam, and this will have the effect of making the evil spell that is Islam vanish. But it's going to take a lot before we get to that, and it's going to be bloody and awful, I fear.