Iraq: The Frontline for Terror? (creating or fighting?)

Lot's of issues here, of course (such as leaking intel reports, political timing, etc., etc.). The one I'd like to focus on, for the time being, is this basic argument:

If the recently leaked intelligence reports are correct (and other corraborating evidence: other reports, military experience, experts opinions, etc., etc.) and the war in Iraq IS in fact CAUSING more terrorism than it is preventing, then what justification can we use for our on-going efforts therein?

The POTUS calls Iraq the frontline for fighting terrorism. But if it is actually creating more terrorists than it is stopping -- then what kind of justification is the adminstration left with?

Seriously -- I'm asking the question (not rhetorically here): what other major justifications can be used if even THIS last bastion of defense of the war is now lost?