This all harks back to the point both myself and an0n made over at warpstorm - that these guys are schoolboys compared to the IRA - yet strangely they inspire more fear, in both the media, the government and as a result the population.
The sections of our society they claim to represent are even given special treatment so they don't feel "blamed". It's almost as if our own government is admitting to being afraid of them.
Perhaps its the medieval mindset, or the sheer suicidal fanaticism that allows for such over-reaction - but they don't have a long term strategy. They don't have an end-goal except religious dominance, which will never happen even if all western governments were to fall tomorrow.
The question is, how do we stem the tide of fanatics long enough for more moderate elements in the Islamic religion to take control, and for more liberal doctrines to take hold in the Islamic community? We're talking at least 25 years here (thats just for western societies, not arab nations).
I think the key is in refusing to refer to Muslims in the UK as "British Muslims" and rather just British nationals. Remove the religious divide that is planted in our everyday language, and thus remind those in Islamic communities that when these people attack, they're attacking all of us and remind non-muslims of the same thing.
These guys are dangerous, but foolish. They're no different from the people who locked Galileo Galilei up.
Of course, tackling the religious divide in the UK means facing an uncomfortable truth (uncomfortable for many people anyway) - that our (Modern British) culture is in effect "better" than that of orthodox islamic communities.