Yes, terrorism works by scaring people into agreeing with their position. The terrorists have harmed Americans, and as a result, America is putting too many rules and laws into place that are supposed to protect Americans. The effect of all of these things is that the country is no longer free.
I'm not sure of where this quote comes from, but it reeks of libertarian garbage that oversimplifies things that are not simple. Some concessions are needed by a country suffering from a major terrorist attack to ensure it doesn't happen again, sure, but to act like the intent isn't to cause senseless violence out of anger and is instead some sort of elaborate job to take away our freedoms is ridiculous.