There's a difference between "letting down your guard" and being selective about the policies you're willing to adopt to effectively fight terrorism. Unless you're willing to defend the patriot act, wars on terror, the parts of the TSA that are obviously just security theater, police militarization, etc as reasonable, then you have to accept that we overreacted. Those parts of our reaction are emphatically not part of our "guard," and getting rid of them is not in any way lowering our guard. Quite the opposite due to their propensity for misuse.
I agree with some of what you're saying, and there's a whole separate debate to be had there. Today, in this thread, I'm only interested in refuting this idea that terrorism is an overblown threat. It absolutely is not. If anything, the threat is being understated by the current administration in the US, using arguments along the same lines as sametmax's.