I agree. I cannot recall either Lord Rama or Lord Krishna preaching dialogue as weapon against evil. From what I can remember, in Gita, Lord Krishna tells Arjun, "Do not care if your brother, uncle is fighting you. Just side with the truth and remember that it is evil whom you are fighting. Evil will manifest itself in many forms to make your weak, but you have to harden your nerves and put an end to evil."
These terrorists, are worse than the evils Arjun faced. Though Evil, during wars Kauravs or even Ravan, never attacked unarmed men, leave alone children and women. However, terrorists have no regard for human life in any form.
Ram Rajya was not formed through dialogue, it was formed with action. Action should come in now when it is clear that dialogue has failed.
Lord Rama, Lord Krishna were men who fought evil with ruthless force, crushed the terrorist forces of that time. They are considered divine today. We have to follow our gods and resolve to finish the terrorists off the face of earth