Yes we will end up unsheathing the sword one of these days. Until a few islamic cities are annihilated they won't understand that they must end their belligerence.
I propose making a well published list of Islamic cities. Publish a warning, in all islamic media, that for each terrorist strike (attempted or successful) we will torch one of those cities, chosen at random.
I believe that should put a dent in terrorist activity very quickly.
Don't choose them at random. Wipe out the home villages of major terrorist leaders.