Thankyou for elaborating, that was essentially what I meant, the para-military wing lost support for the armed struggle.
I suspect there are quite a few people in Hezbollah that feel the same way. They formed to get Isreal out of Lebanon and Isreal is still in Lebanon. If Isreal pulled out fully and offered support for reconstruction they might find a lot of wind would go out of Hezbollah's sail. Also the kidnapping does look like it was intended to facilitate a prisoner exchange. These aren't really the "Kill all who worship the great Satan!" people, IMO.
Al Queda is full of radicals that hate the West but they're not the only type of terrorist in the region.
On a side note a way to really take the wind out the militants in Iraq and Al Queda would be for Bush to loudly proclaim that he was going to move troops out to impose a ceasefire on Isreal, and then do it.
He might just undo most of the last three years of damage the US forces have done.
Terrorism requires at least tacit support for the population, thats what you need to neutralise, after that the movement can't opperate and sustain itself.
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