We need to retool our military to fight borderless wars. Invest in more special forces that move throughout hostile areas and exterminate local/regional ISIS leadership at the same time we bomb strongholds where leaders reside.
And what would that achieve?

Create a propaganda division to stem the tide of radicalization through the promotion of moderate Islamic ideas.
All evidence points against this working, both in the specific case of Islam and for "moderate" propaganda more generally.