The containment is driving the feedback loop thereby keeping us from improving the situation. We need to take a leap of faith in order to break it.
Like others have said the damage this is causing is mostly mental. The number of random (I mean that as in could happen to anyone not downplaying the significance of human life) deaths caused by terrorism is not so large.
However this does not mean we should tolerate people who refuse to play by the rules of society because of their personal beliefs (whatever they may be). Any countermeasures must be above board and transparently fair.