I am happy to agree that anyone using such tactics should be blown into the smallest possible pieces. Of course, they often do that for themselves.
What I was referring to are those who, quite contrary to the experience of all counter-insurgency history, believe that we would be more effective against the terrorists if we were much more ruthless against the general population. The problem is that in insurgent and counter-insurgent warfare the field of battle, and the prize, is indeed the hearts and minds of the population. Initiating our own indiscriminate counter-terror would be satisfying in some ways, but quite undoubtedly counter-productive in the long run.
Insurgent is a general term referring to who a group is fighting against. Terrorist refers to particular tactics used by some insurgents.
I consider the Iraqi "insurgents" to be terrorists. Period.