How about whole Eastern Europe except Russia ?
Terrorist attacks in Russia are down 90% over the past decade. The major source of the attacks were from Chechen separatists, Chechyna is a majority Muslim country.
Russia decided that to stop the rebels, they would go after the families. It was declared that the family of any terrorist would be arrested and jailed, as it was the families responsibility to prevent members of their family from carrying out terrorist attacks. Thousands of people vanished as rebel families were rounded up and arrested.
Within 5 years the rebel movement was completely broken, the leadership almost completely dissolved and thousands of people dead at the state's hands for no crime other than being a relative of someone else.
So yeah, there are ways to solve terrorism. I think most people would recoil in horror at those ways though, and would say that you have become worse than the terrorists in carrying it out.
Two points though: Islamic terrorism in the west is still a relatively infrequent occurrence, less than a dozen major attacks a year. Scary on the news, but not that frequent. If the frequency ramped up dramatically, you will see support for things like the Russian tactics increase. Terrorist attacks in just 3 Islamic countries (Iraq, Afghanistan, Syria) occur at a rate 10x higher than in the West.
Second, the fear of terrorism for intelligent people should not be the actual current acts, but the future. Your chance of dying to a car accident, lightning, falling on ice, etc are much higher than terrorism.
But those are things that are fairly steady state, probability wise. 9/11 showed that terrorism can ramp up asymptotically and suddenly. If terrorists were to get their hands on a nuke or a biological weapon that could kill 100,000 people in minutes they would not hesitate to use it. Thats the fear in the future.