I've just read through this topic, and I have to say that yes, the act that took place in Woolwich was a terrorist act, however... Something I think Blaze might have been trying to get across (and he can correct me if I'm misinterpreting him) is that the media is hypocritical in it's definition of terrorism. I think that is not only an important point but a point that is very true. When the US and UK deploy drone planes to bomb political 'enemies' in the middle east, that by dictionary definition should be considered terrorism, and yet because it was carried out by rich white western countries, our media refuses to use the word. However the have no such problem calling the flying of a plane into the world trade centre, an act of terrorism. Just a few days ago a 75 year old Muslim man in this country was stabbed in an attack that was considered by police to be a racially motivated attack. That is as much an act of terrorism as what happened in Woolwich, and yet that word is no-where in sight when you read the media.
Anyway, as for the initial questions that Ash rose in the original post, I do think religion is a dangerous force in society, as is any belief in any form of illusion. Because illusions have no basis in reality or evidence, they can be twisted and manipulated into making good people accept or support terrible acts. This applies to theological religions, patriotism (a strand of faith that believes in an innate greatness in your own country), racism, many anti-establishment conspiracy theories, and even media driven ideologies.
However, it is always more complicated than just blaming faith systems, as they are merely the tools used to circumvent critical thinking of the masses. Whilst I genuinely think the world would be a better place if we replaced beliefs with critical thinking, there is a greater problem that needs to be addressed, and that is inequality and oppression. It is those factors in the world that pushes the masses into accepting extremist views that bare no resemblance to the real world. You just need to look throughout history to see it, whether it be the Allies economically oppressing the Weimar Republic and condemning them to poverty that gave rise to Nazism, or the western support of brutal dictators in the middle-east for financial reasons which has allowed for Islamic extremism to become popularized.
So that's my views on the bigger questions. Oh, and one more thing, I really hate when people call soldiers 'Heroes'. There are no heroes in war, only victims.