It has probably in fact increased it in the short-term, terrorism being cheaper than war. By all accounts, though, the Chechen fighters are broke. The primary threat from Chechnya was not terrorism, but military incursion into places like Dagestan.
What was the only "government" that recognized the "state" of Independent Ichkeria? The Talibs!
===== Nu, zayats, pogodi!
So you support unilateral military invasion of nations with politics you don't like? As Chomsky says, this is pretty much a license for everybody to invade everybody else.
P.S. Do you have an analysis of the material causes of Wahabbism and fundamentalist Islam? Loving Slavs and appreciating their perspective and their sexy waitresses isn't exactly a solution to this problem. An eye for an eye does not work.