> terrorism will never touch the average citizen anywhere near the extent of other tragedies like illness, accidents or natural disasters

This argument ascribes zero weight to the injustice of terrorist attacks. Your logic--that a death is a death--does not admit distinguishing between someone dying in a freak accident, someone being killed by a drunk driver, and someone being murdered in cold blood. It's all the same.

You're ignoring a very fundamental aspect of human psychology: people view a death very differently based on the intent of those doing the killing. Unlike murder, terrorism isn't just an attack on one person. It's an attack on the values, religion, economy, and lifestyle of a whole society. That's why people weigh it so heavily.