I believe that you both overestimate governments and underestimate fanatics. There are parts of the world where governments are small enough and rule tyranically enough for the fanatics to control the government . In these cases it is possible for much foolishness to be done by the govt.

The best protection from terrorists and from intrusive govt is individual responsibility. The more we take responsibility for ourselves the less likely we will be to have to rely upon "Big Brother" it is this dependance that empowers the govt to over-ride our liberties in order to protect us. The more we take responsiblity for ourselvees the less vulnerable we will be to the seconndary effects of terrorist attacks. Terrorists will always be able to blow up a restaruant - heck any kid could do that. But if we have our supplies ready and can weather whatever secondary effects such as blackouts, neighborhood reconstruction etc pretty much in stride then our society won't be damaged and our way of life won't be threatened. It may become a daily annoyance and an on-going fight / police activity / military activity but it needn't keep us from going on or even slowing down. The Israelites have managed to deal with terrorism against them wherever they have lived for several millenia and yet their culture persists and thrives wherever the find themselves.

Prepare, be vigilent, don't give in to paranoia, don't give in to terror, simply do what is right and keep on keepin on. When someone does you or yours wrong seek justice but don't live in a jail or a bunker. The jail imposed by an overly intrusive govt isn't much different than the bunker chosen by the doomsayer.

What are you left with? Go to work and hope you come home. Your odds are still better than they were when we weren't the top predator on the food chain.