This idea has similarities to part of the defense policy put forward by Harry Browne in Why Government Doesn't Work. At first it may seem like proof of libertarian insanity, but hopefully if you think about it you can at least see the consistency. Wars are ugly things, usually ordered by leaders for dubious purposes. Is it more moral to make the leaders bear the cost, or to make thousands of mostly innocent soliders die for political maneuvering?
An Economist article on terrorism, as a first answer to accusations that the articles published above advocate terrorism.