I'm not saying that Islam is responsible for terrorism. What I'm saying is that the prevalence of extreme, uncompromising forms of it are. While there will always be dangerous extremists resulting from any religion (or belief system for that matter), I think there are a particularly large amount coming from certain Middle Eastern countries because extreme forms of Islam are more socially acceptable there than extreme versions of the prevailing religion are in other parts of the world.
What would help diminish Muslim terrorism would be a more widespread condemnation of it by the region's leading Imams and Muslim organizations.
Another approach would be the promulgation among Muslim Middle Easterners scholarly criticisms of the validity of the Koran that also challenge Muhammad's prophet status .
These two approaches would help make Islam much less socially acceptable, methinks, and thus adversely impact the funding and recruitment of the militant radicals.