You forget history very quickly. Historically, the West has been under siege by the Islamic Empires. I can think of at least 5 times in the last 1,000 years when Europe was under an existential threat from the Islamic Empires. If something minor, such as the weather or the health of the current ruler were different, we'd be posting this in arabic. So Islam has flourished and rather extravagantly at that. Remember, the great seat of mathematics and science was Arabia for about 800 years while Europe was busy destroying witches, warlocks and other dissidents. So progress, science and all these things are not exclusive to the West.
Look at Germany as a great example. That country was radicalized to a never before seen extent. It took the biggest war in history to bring down Hitler and over 20 years of democracy building to make Germany the country it is today. You think if we installed a puppet dictator that Germany would be in the same position it is today? Look at East Germany as a great counter-example, it languished under Soviet Union. It took 20 years of reunification to bring East Germany to the same level as West Germany. By and large, the Middle East and the Muslim world as a whole has been oppressed by installed dictators. This is the biggest problem.
As for terrorism, any oppressed group will lash out in violence. The Jews did it in the '20s when they bombed London apartment buildings and exploded cars in Tsarist Russia. The Indians did it when they were under colonial rule with the British. Sri Lanka just finished a decades long with their oppressed minority (the Tamils). The Irish just gave up their struggle about a decade ago. So again, terrorism isn't just limited to Islam, just about every major ethnic and religious group is guilty of this.