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If victims need to be consistent. When terrorists are shown that they'll either get a bomb through the roof or nothing, but never payment, then they'll change their business plan.

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The goal of most contemporary terrorist is not personal enrichment.

It is hanging out with their buddies.

See http://www.gwern.net/Terrorism%20is%20not%20about%20Terror#t... and http://www.gwern.net/Terrorism%20is%20not%20Effective

This strategy has worked so well in Israel/Palestine /s.

That's because the situation between Israel and Palestine is a bit more complex than the proponents of that particular strategy in that particular case would like to have you believe.

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