US founding fathers were terrorists. Native Americans were terrorists. Japanese were terrorists. US government in Iraq. So were Northern free slaves. All were basically beyond negotiations per the opposition. To be a terrorist doesn't mean you are inhuman. That is a separate and different step. To think so is oversimplifying the situation and giving yourself a handicap in the fight (like the Brits did :) ). First recognize that they too have goals, are determined, and smart. That will help you fight them better.
ISIS couldn't have gotten as much territory nor stayed in power for so long if there wasn't a significant part of such territory that supports them. People don't need to actively support you; they can just ignore you cause you are no worse than the last guy who "ran" the place. People like Osama can't hide under the noses of the Pakistani military forces without local support (I am not implying the military itself was hiding him). Because without support, some random person will report you to your enemy.
Same with operations and coordinations. You need the environment that you operate in to provide some level of voluntary cooperation and not mess with your plans. Without it, you wonder why your trucks need 2x the gas than normal. You wonder why your soldiers eat 2x the food. You wonder why you need to pay 2x the money to get something.
Sure, you can steal and plunder, but it is short lived. You can't get corn after the first month if the foreign vendor doesn't ship to your region anymore. You can take over an oil refinery but you better have buyers. Else that is a big red target for your enemies to take out. But, if you left it in the owners' hands and bought it from them, they might even give you a deal!
But once you do something inhuman (and sadly more important: people know about it), the whole game changes. You may want to buy something, but your vendors shrink, and the cost goes up. You may want to sell something, but your buyers don't want to be linked to you or you need to sell at a lower price. The locals will fear you, but also be harder to control and cause more trouble. Just from people seeing you as the "enemy" sets up a huge inefficiency in your operations.
In the US, shopping is very non-social. We go, we select, we pay, we take. 90% of our shopping. In foreign places like these, there is a lot of social interaction. A lot of news gets passed around. Prices are negotiated, local events are discussed, etc. In a cooperative/neutral environment, you learn what is happening in that region. In a support environment, you are provided local intelligence to act upon. In an antagonistic environment, you keep falling into traps and your enemies are provided intel on your operations.
Basically if there weren't a lot of people who didn't put ISIS in the "don't care" and "what's the difference" camps (and clearly some put them in the "friend" camp), they would have disbanded a long time ago. Beheading/executions/shootings of soldiers or even foreigners doesn't upset people much (Foreigners=blame the victim or foreign gov. People think it only takes $100k to save that person, why didn't the $100 trillion dollar gov. do that?). That happens everyday, he shoots him, he shoots back, dinner time. "Humans" do that all the time.
But this video changes ISIS' image significantly cause the screaming horror of it. People who were neutral (a lot) and supportive (few) will step back. Enemies will up their game and consider action plans they would never use against a "civilized" enemy.