In 70 A.D., Caesar Titus had a problem: The Jews who lived in his subject state of Israel were becoming rebellious. Again. You see, ancient Judiasm, much like modern Islam, was a religion of earthly dominance...one which believed in a military messiah establishing rule in the middle east just as fervently as modern Islam believes that it should spread the tentacles of its perverse faith to all lands by the sword. So Titus, correctly having identified the problem as a religious one (and not an economic or political one) ordered the Second Temple burned, destroyed all surroundings, and packed the soil with salt to prevent anything from growing and the return of the Jews. The state was renamed 'Palestine' (after the Philistines) to obliterate the Jew in Judea or the Israelite in Israel. Hadrian renamed Jerusalem 'Aelia Capitolina' after the defeat of Bar Kochba in 135 CE. Only the gods of Rome were to rule the ravaged land and Jerusalem's holy status was to be no more for the Jews (the Hebrews). ...and you know what? It worked. It's been 2000 years since anyone associated with Judiasm has launched an unprovoked military offensive. This single act - burning the temple to the ground and destroying the records contained within - forever annhilated the concept that a military messiah would come to Jerusalem and establish a free Jewish state from Jewish theology. Such a simple problem. Such a simple solution. One that we should apply, but despite our strength one which we are too cowardly to apply.
...for if ten years from now all of Islam saw that their faith in "Allah" was about as credible as having faith in the easter bunny, the world would no longer have a terrorist problem.
Islam is in fact the problem, and its transformation will not occur until it's theology is discredited.