I agree with the bulk of your message, but I will point out that this section is factually incorrect:
Why do you think it is that it's always groups that are completely outgunned that turn to terrorism? Why don't, when armies face off, they don't tend to focus on razing the enemy's territory to terrify them into quitting? Even Hitler and Stalin (in the majority of cases; there were some exceptions) didn't do that.
WWII was practically defined by the extent of the waring parties willingness to try and raze each other in submission - have you not heard of the blitz? Or watched 'Memphis Belle'? My own city, Coventry, was practically flattened during the 2nd world war - you can still see the bomb craters dotted around undeveloped land in the city and see it in the architecture of the buildings. At the same time this was happening the US (primarily), Britain and her allies were dropping bombs willy-nilly on German targets.
In another example, King Richard the Lionheart (as he is ironically known) slaughtered Muslim hostages to gode Saladin into strategically foolish attacks and massacared the women and children inside Jerusalem when he captured it.
The idea that civilians are not a legitimate target is a very modern one.