Your tagline(Why is the War on Terror being managed by the DEFENSE Department?) gave me an idea: fight the war with the free-market. Take one billion dollars, split it into 1,000 chunks (thats 1 Mill$ each) and give it, along with lazer spotters to 'reliable' ground recruits who could 'point out' the location of insurgents as they happily plot attacks over a glass of goat wine.
A few pinpoint sorties by F-16 and F-18's, and the insurgents might think twice about any 'gatherings'. By making instant millionares out of a thousand 'spotters', you could put a big dent in the resistance. Now, mulitply that by the amount currently being spent......this 'war' is done in a month.