The Security vs. Liberty "Trade-Off"

We are all familiar with the old Ben Franklin quotation:

Those who would give up Essential Liberty to purchase a little Temporary Safety, deserve neither Liberty nor Safety.

But in the context of terrorism, it seems that this is a false dichotomy; "trading" liberties for security might result in a reduction of both!

I know I quote Schneier too much, but he is just so sensible about security issues!

http://www.schneier.com/blog/archives/2007/07/good_commentari.html