An interesting read, Cube. I was a bit suspicious about a Daily KOS link, but this one was worthwhile.
That said, I think the assumptions and therefore the conclusions the author makes are flawed.
1. The article suggests that actions like a bloody conflict in Iraq play directly into Bin Laden's hands in terms of recruitment and inciting muslim anger - do you agree or disagree with this analysis? Why or why not? I believe this may be true. A bloody conflict in Iraq does play into the hands of radical Muslims--IF the US is seen as being the cause of the civilian deaths.
No one will deny that the US military killed Iraqi civilians. However, I think most reasonable people view them as collateral and not direct casualties. In the continuing conflict, who is seen as the cause of dead Iraqi civilians? I would hope that it is the insurgents, who are targeting these people and not the US military, who is not.
It all depends on the press over there, of course.
There is a fundamental flaw in this theory. I don't think bin Laden predicted the US invasion of Iraq. Since he did not produce the event, I would hardly describe it as being part of the "master plan". That isn't to say that he can't take advantage of the US actions in Iraq, but he did not cause them, in my opinion.
Similarly, we don't see Afghanistan being used as a recruitment tool (at least it isn't publicized as such in the US press). The attack on Afghanistan was predictable and probably part of bin Laden's plan. However, it did not produce the results that the author says that bin Laden is after.
We always tend to give the enemy credit for things that are really out of his control. Lucky happenstance becomes brilliant strategy. Frankly, bin Laden is lucky to be alive and in a cave somewhere. I think ascribing extraordinary planning, patience, tactical thinking or global strategy to him is giving him more credit than is his due. As the article said: Tim McVeigh was no genius and yet he was able to carry out a large scale attack. Why hasn't bin Laden? Oh yeah...that isn't his plan

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2. The article cites that Bin Laden beat the Soviet Union largely because they bankrupted them in an expensive 10 year guerilla war - given the current state of affairs, the cost of the Iraq war, and the potential for more conflicts could the United States be marching down this same path? War is not going to bankrupt the US. The US (unlike the Soviet Union) has the strongest economy in the world. Its GDP is growing at the fastest rate of any industrialized nation. Instead of being a burden on the US economy, the war is boosting it in the short term. It is causing a slight rise in the national deficit. But this deficit is still well within the percent of GDP that has been historical over the last few decades. There is no undue burden here. The US economy is unlikely to collapse anytime soon.
The Soviet economy, on the other hand, collapsed due to factors unrelated (directly) to Afghanistan. In short, bin Laden got lucky with his timing.
3. The overriding theme here is that the cool head prevails and will win the day and that extremists (i.e neo-conservative hawks) only make the situation worse - would you agree or disagree with this conclusion? Why or why not? The other side is always "extremist", isn't it? I am sure that if Kerry won, he would be an "extremist". If Jimmy Carter got back in the White House, he would be extremist (to radical Muslims). Bin Laden seeks to demonize Americans, not just Bush. It is propaganda.
The statement that "cooler heads prevail" is simply an oversimplification. It has no real meaning without context. Have these "hawks" continued invading countries? Have they been belligerent with North Korea or Iran, for example? So the "hawks" aren't so hawkish after all.
4. Given the conclusions and analysis in this article as well as the current situation and your view on things - who is winning the War on Terror at this stage of the game the United States or terrorists? Why do you feel that side is winning? Bin Laden is on the run. The Middle East is calming down. Afghanistan has gone from being ruled by thugs from the Middle Ages to a government where women can vote. Iraq, although not perfectly peaceful, will have elections next month. I see no pan-Muslim leader stepping up to oppose the US.
If bin Laden's goal is a united Muslim world, then he is losing badly. He has no hopes of winning because the very rulers of the Muslim world will not allow it. If bin Laden's goal is to personally become the ruler of the new Caliphate, then he is deluding himself.
Given the positives on our side and the negatives on bin Laden's, I would say that we are winning the war on bin Laden's brand of terrorism.