Terrorists who seize and threaten to behead foreign hostages in Iraq have elevated blackmail to a national level. They use the Internet and video cameras instead of pasted-together ransom notes to target the political stability and collective will of entire countries. By withdrawing its symbolic 51-person force from the U.S.-led coalition -- and then vaunting its surrender as a "triumph" -- the Philippine government gives these technologically innovative extremists a huge success. Manila's withdrawal is militarily insignificant. But it echoes loudly through the psychological and political realms that are the terrorists' most important battlegrounds. Six foreign truck drivers were kidnapped...