Some call it wishful thinking, but President Barack Obama has all but declared an end to the global war on terror. Obama is not claiming final victory over extremists who still seek to kill Americans and other Westerners. Instead, he is refocusing the long struggle against terrorism that lies ahead, steering the United States away from what he calls an equally frightening threat—a country in a state of perpetual war. In doing so, Obama recasts the image of the terrorists themselves, from enemy warriors to cowardly thugs and resets the relationship between the U.S. and Islam. His speech Thursday was...