While the vast majority of hackers may be disinclined towards violence, it would only take a few to turn cyber terrorism into reality.

The concern is over what will happen as strong encryption becomes commonplace with all digital communications and stored data. Right now the use of encryption isn't all that widespread, but that state of affairs is expected to change rapidly.

Everyone is a proponent of strong encryption.

Systems are complex, so controlling an attack and achieving a desired level of damage may be harder than using physical weapons.

Further, the next generation of terrorists will grow up in a digital world, with ever more powerful and easy-to-use hacking tools at their disposal.

I think most organizations have an interest in key recovery, at least with respect to stored data.

Although cyber attacks have caused billions of dollars in damage and affected the lives of millions, few if any can be characterised as acts of terrorism.