After reading the OBL transcript, I have to ask: has he or anyone provided a list of actual demands that would create a cease-fire? He speaks of the US threatening Eastern security, but no more.

Clearly, there are the most extreme groups who want to completely destroy Israel, but I'm not sure OBL has explicitly made this demand: in the new tape he cites US support for attacking Lebanon as a reason for 911, but doesn't say he wants Israel to stop existing before he'll stop supporting terror tactics.
Now, he would demand a complete withdrawal of US troops from Iraq, but he and his don't seem to realize that you have to say these things in a clear list. (And then everybody can know more precisely why they're killing each other...)

On the other side, the US seems to be fouling its own nest by antagonizing everyone.

So we're in the middle of a "war" with idiots on both sides: beheading civilians is obviously not a good method to get your way--it creates fear, but only solidifies the opposition against you. Much like killling lots of civilians with bombs. (Don't they all need a basic public relations course?)

It's like a lunatic hostage situation in which the hostage takers won't make specific demands, and the police are just firing at random, killing bystanders and hostages they say they want to save.

So this situation will continue, without end? We clearly don't have enough troops to occupy the entire Middle East, so we can't win a complete victory, and any proxy government that supports the US is going to be seen as, well, a proxy government supporting the US. War without end, until someone uses a very big weapon. Or US troops get pulled out, and a few months later Iraq is taken over by a nonsecular government that wants to keep its oil, and US troops go in again. Rewind and play again.