>> terrorist organizations reflexively reject compromise proposals offering significant policy concessions by the target government1;
> This is just game theory. You have the game "Chicken"
I think it's often more subtle then that, there seems to be a psychosis in small, radical, groups where people get more respect in the group by being (or at least sounding) more radical which then feeds back on itself until any hint of compromise becomes heresy and can literally get you killed.
I suspect the most politically successful terrorist groups are the ones where the leadership manage to break out of the cycle and compromise some demands to achieve the rest without their followers killing them.
But yeah, the People's Front of Judea are the real enemy. Splitters! :)