Kos sums it up nicely:

Actually, the strategy of the terrorists is to sow terror. I thought that was self-explanatory.

And if sowing terror is their goal, this administration has made the terrorists' strategy a resounding success. We, as a nation, have evolved from Patrick Henry's inspirational, "Give me liberty or give me death!", to Bush's "Give me your liberties or you'll die." We have even color-coded our fear.