P.S. China has a bigger military.
I can't see the military being able to stop terrorism, full-stop, ever. You can't fight an ideology like this with fire, only with education and a better foreign policy. And I'm not entirely sure what 'progress' has been made in the Middle East? If you're referring to Iraq, we invaded on the pretext of WMDs that weren't there, found Saddam cowering in a hole and fed him to his own people, but the average Iraqi's situation nor safety hasn't improved in reality a whole lot. In Afghanistan we are fighting a war that doesn't seem winnable because the governments, police and to some extent the people are not entirely on our side, nor anti-Taliban. How can that be won? We kill Bin Laden up the road and down the road 300+ Taliban commanders dig their way out of an Afghan prison just a couple of weeks before for the third time in just a few years, obviously with help from the prison guards. Not to belittle the efforts of our soldiers - it's our governments I have problems with, sending them off to do things evidently not thought out properly.
Personally I see the military of either of our countries as professionals, there to do a job, and thank God they do. I respect their willingness to put their lives on the line for others, it's admirable, truly. But they can't stop everyday people or disgruntled foreign converts being indoctrinated into bombers... all you need to spread 'terror' is an explosive device, a backpack, and someone willing to carry it; and they can't stop the cause and effect that is sometimes perpetrated by yours and mine own governments that fuels this fire of terrorism. Our governments are by no means innocent in this - hit up a little history of the ME and you'll see we've been poking our fingers in their pies for a long time, and nothing is without consequence. "Al-Qaeda" mind you, is almost certainly political, not religious ideology and intent, it just hangs out in the guise of religious ideology (or people actually think it's Muslims vs Christians) and it's to do with power struggles of select groups and sects in the ME. As long as our countries continue to involve themselves in this and in the ME, this will continue to be our problem.
You can't wage war on terrorists with conventional methods and means, so we are more than likely in for long, long haul here - just like the UK is with Northern Ireland's Troubles, and terrorism hasn't really gone away there either after 40 years, they're still at it and will be until the separatist ideology (or just the wanton violence) finally passes on or there is some other change. This isn't Iraq, a conventional invasion, easily won with superior power in a matter of weeks. What would you bet that killing Bin Laden will actually stop "Al-Qaeda" dead in its tracks? I wouldn't bet anything, because if they're serious, they've got ten guys lined up already to take his place and carry on. And why are they attacking us in the first place, and why do they attack places and symbols of Western prosperity? Western influence, presence and pressure in the ME which the West is well aware aggravates groups in the ME; AQ don't like it and since they don't have the means to confront it physically, this is the only way they can. Unfortunately for us, it is very easy and cheap for them to make bombs and recruit people. I suspect this problem will be with us for a long time to come; but it might just ease off if our governments too eased off in the ME. Which they won't - too much oil interest. Terrorism, war and unrest is a price I'm sure our governments are prepared to bear to maintain their interests there.