When did we start being more afraid of our own government than of terrorist?
You should always be more frightened of your government than of terrorists. All terrorists put together have only ever killed thousands of Westerners, unless you're in very unusual circumstances, your chances of being killed by a terrorist can be reasonably approximated as zero. Many Western governments don't really kill their own people, but occasionally, you can get one which will kill millions, so the chance of being killed by your government is substantially more than zero for everyone.
(Well, actually that doesn't apply everywhere, if you live somewhere like Pakistan, your chances of being killed by a terrorist become non-negligable.)