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Actually the premise is correct, we are at war with all of Islam but if you don't have the stomach for nation building than how could you ever accept the alternative which is not inaction but scorched earth. Your assertion that there is a better way to conduct ourselves throughout the world may be true, however in the history of man all other avenues that have been attempted have met an abysmal end and left more people hurting, displaced and effectively eliminated as a cultural entity.
I do agree that nation building is a failed cause, when the enemy is destroyed victory is never in dispute, I believe that the war in Iraq would have been better prosecuted with a strategy of carpet bombing every major metropolitan area in Iraq. History dictates that the will of an opponent is rather quickly broken with such tactics. In our own war between the states Sherman did what Lee would not as he marched on Atlanta. The duration if not the course of WWII was changed by the bombing of Dresden, even the American Indian (I suppose you might prefer the less accurate term "Native American") has never risen from the ashes of their defeat as their villages and towns were attacked by the forces of westward expansion. If you were really desirous of a new world policy towards correcting wrongs wouldn't the logical place to start be in moving all non indigenous peoples from the North American continent?