The Islamikazis have not seen that level of defeat since the days of Stalin, and as such do not believe that they were defeated, merely set back a step.
What needs be done is to totally crush any regime that supports terror. Retaliation for terror attacks should be wildly disproportionate. For example, if another bombing attack occurs in Jerusalem, erase Ramallah from the map, Arafat included. Another major attack like the Passover attack last year, exterminate every resident of Gaza City.
Sooner or later they'll either wise up, or we'll have killed them all off... either way, problem solved.