Dollar for dollar, the most effective, and long-term, way to fight Jihadist terrorism would be to provide scholarships for students willing to study Arabic and Muslim culture and languages, and to finance students to live and study in Islamic countries. Until we build up a cadre of experts on them and know as much about them as they do about us they will always have an intelligence advantage over us.
I'm not sure I agree with all the points you've made, but there is a lot of food for thought there. The cash we've spent so far fighting the war on terror greatly exceeds the damage terrorists have done to us. The tendency of the current administration to privatize and commodify all human activity creates a great conflict of interest in those who are tasked to defend us. Like in the Cold War, we don't have a strong defense, we have a strong defense budget and a strong defense industry. I know, I do a lot of work in this area professionaly (in technical support, not policy) and the contractors and consultants are engaged in a feeding frenzy like I've never seen, even during my spook days in Cold War Silly Valley.
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