Jihad must be fought on both the physical and the psychological level.
What that means is that, after you kill them you must defile their bodies so that remaining jihadis believe that they won't get to 'heaven' nor receive their '72 virgins'.
If you take that belief away from them, and instead they believe they will end up in 'hell' because their bodies were defiled after death, you won't have nearly the enthusiasm for jihad that you have now.
The only way to defeat the uncivilized, is to let slip the bonds of civilization.
The British fought the American revolutionaries in a very civilized fashion. Line up, take your shot, receive the volley, reload, do it again. The Americans seeing that they were out gunned, by a better trained army, took to guerilla warfare. Very uncivilized.
Now, muslims are taking a page from that book. So, do we continue to "line up"? Restrictive rules of engagement, genuine fear of collateral damage. Or, do we fight them on their level? If they are shooting from a mosque, destroy the mosque. If terrorists from a suicide attack are identified, kill their family, and burn their home.
We can fight them or their level or lose. Those are the only two options.