I fully agree with you. The only difference is that Islam tells you to fight injustice, and injustice can be of personal, society, caste, state, country and religion level. The terrorists are the ones who take injustice (personal level) done upon them and use Islam to justify their act saying that it is injustice done at the Country/Religion Level.
Now if personal grudges are taken at a national/religion level Islam does not allow it. But injustice at the National Level/Religion Level, Islam tells you to fight for it.
For the Kashmiri pandit brothers, I would suggest to them that they do have the support of the central govt. and they should take the issue as a National Issue and fight for it. You need a diamond (will-power/intention) to cut a glass(terrorism)