First off, somebody in this article seems to be saying that this premise is false. That being covered in pig parts, being shot by bullets dipped in pigs blood, or being buried with pig parts does not affect one's afterlife (according to Muslim faith).
Any muslims? Is this true or not?
As for terrorists, assuming this is true, I don't have a problem with that. If somebody is willing to commit a horrible crime against innocents, what do I care if their beliefs are violated? It's not like you're saying we should do this to all muslims, only those committing crimes. And if they're catholic terrorists, refuse them their last rites or whatever would make Catholics think they go to hell. If a message is sent that a terrorist action will damn somebody to hell, maybe that will reduce it.
On the other hand, the whole die and get 70 virgins thing has been debated and I don't know whether it's true. It's easy to tell the Americans that people killed themselves and others for some fundamentalist belief that they don't understand and sounds silly to them. When in fact, these people may have had strong beliefs about our foreign policy and about things we do to manipulate the middle-east region. If it's not fundie beliefs, then people start to ask what is the US doing to piss off these people and those are the questions they don't want asked and answered. And much of it seems to involve our support for Israel.
What's at the heart of that anyway? Sure, they're our allies, but we spend a whole bunch of money on them. Why do we care so much about them? What do they export to us? How much do they buy from us? Right now we give them 3 billion in aid per year. 2 billion of which they use to buy military equipment. They are already the top and most advanced military power in the region. Why do they need our aid and why do we give it? Are there some fundamentalist religious beliefs tied to our relationship? Do we get to go to heaven because we help "God's chosen people"? I'm not suggesting turning against them. But wondering why we are so interested in them.