This is not correct. The terrorists want to not die themselves and bank on our (rather your) unwillingness to potentially endanger civilians to do so. Every time you afford them saftey by doing so, you validate this tactic ensuring it becomes widespread. Unfortunetly for you what you are also doing is affording them a secure base from which to more effectively conduct their actual operations, which in most cases today also involve the deliberate death of civilians.
The really screwed up thing given your warped perceptions is that you will blame the opponents of the terrorists for BOTH sets of civilian endangerment
The collateral damage thing is a recent development, and it is born out of unrealistic expectations gained most probably through TV and movies and unfortunetly through our own boasting. We have made it a point to always talk about how technologically awesome we are without ever qualifying it to the point were poeple think it actually is an option to send in the Rangers/SEALS/Green Berets ever time a terrorists hides out in a school. Its not, it never has been, and it will never be this way.