Except terrorism doesn't instill terror, as proven by the terrorism in the previous century, when we just defiantly went about our business the same as before. And I say "defiantly", but it doesn't take much bravery if you know that the odds of being blown up by terrorists are so much smaller than having an accident during your daily commute.

The government and the media are the ones that leverage terrorism to instill terror.

Terrorism as a tactic in itself is a proven failure. It requires the support of media and government to have any impact.

Which makes the conspiracy theories of our own governments deliberately encouraging terrorism quite realistic.

Especially given that it has happened before (CCC, Gladio, etcetera). Western governments have never shied away for faking or aiding terrorism, it's remarkable that we keep referring to this as tin foil hattery despite a) the long track record and b) the simple fact that they are the only ones who profit from it.