The people doing the recruiting may have no qualms about torture, but the people that they want to convince to join them may have a more realistic view of right and wrong.
How do you convince people that it's better to live in a theocracy in which every move is dictated by those in power? That is the task of the people behind the terrorism, and they seem to be able to do their jobs well. We have hte easier task of convincing people that freedom is better than autocracy, and yet seem to fail at it all too often. Why is that?
First, in reply to the top portion of your post, I refer to my own post #57, in which I detailed what happened in Palestine during Clinton. I quote myself:
In the 90s, during the Clinton administration, the PLO accused a fellow arab Palestinian of being a spy. Without a trial, or the slightest scrap of evidence, they dragged him through the streets of Palestine, publicly beat him physically, and stoned him for more than an 1 hour. After being tortured by his own people for blocks, he was hung upside down on a communications tower by his legs. There he was stoned and beaten until death at which point they sliced half way through his neck with a blade of some sort. Then the people of Palestine had their children come and and throw stones at the body until one finely knocked his head off of his sliced neck.
To clarify, the PLO only made the accusation... it was the general public that dragged him through the streets and brutally tortured and ultimately murdered a member of there own nation. It was the mothers and fathers who brought their own children out to desecrate the body of the accused. Granted this is one example, but I know of about 6 more, and this is fairly common among middle eastern cultures.
Why do you think the middle eastern man tortured and ultimately strangled to death his own daughter in Canada and called it an "honor killing"? You believe that people with these as moral values are going to be horrified by waterboarding? Time to get a reality check.
Part two answer: I do not think that we have failed so often. History is covered with the success of spreading freedom in other lands.
However we have lost many times, but normally by our own choices. We lost China because our government refused to help our allies there when they were being over run by communists supported by the Soviets. We lost Vietnam because right when we made peace we withdrew all support and in came the Soviet backed north Vietnamese. On down the list it goes. Carter ignored the Shaw of Iran, a very westernized leader, who was than over run by the current fruit bat who doesn't believe the Holocaust happened.
There are other reasons though. Every horrible dictator divides the country into groups and pits those groups against each other, in order keep focus off of themselves. (a tactic used often in the 90s) Saddam, for example had a huge group of people that thought highly of him because he was 'on their side' against another ethnic group. They knew he was a scum bag, but he was their scum bag. Even Castro had a small group of dedicated followers in Cuba. So rarely is a country uniformly against the evil dictator.
Finely, not all dictators are automatically bad. Sometimes people come to power that really, and honestly want to improve things, and move to that end. Is a republic better? Absolutely. But it's hard to convince people in another country that this is better when the person in power is not all that bad.
Last, I'd say, sometimes the people, the public... is just really screwed up.