Agree with most of what you said, except this: "Which has been the policy of the Bush Administration whether you are willing to accept it or not." A token "see, 1 month of sanctions didn't work, screw it, we're bombing Iraq" doesn't count as diplomacy. Refusing to sit with Iran to discuss alternative means of getting cheap, safe means of power, nuclear or otherwise, doesn't count either. Going off in a press conference, giving three unfriendly nations a cool comic book nickname "Axis of Evil" doesn't count, especially when once Bush gave in to the UN suggestions of multi-lateral talks with N. Korea, they stopped their nuclear program. The fact is, reasonable attempts at diplomacy include the ability to consider the other side, even if it is insane.

They only say "Kill all Westerners" because we haven't ever done anything to change their minds. I'm sure it would be like talking to a wall when dealing with the extremists, but as far as the moderates driven to extremes, talk and discussions may be more effective. And if it doesn't work, what's the harm in trying?