A significant part of terrorism is based on an imbalance of power, where one group exploits another or merely when one group feels significantly slighted or oppressed by another group.
That is why, I believe, that these educated people become radicals after their western education. They see a huge power imbalance that marginalizes them and their culture. They see a culture and history that conspires against their way of life, where the entrenched powers exploit every possible avenue to stay on top, some times at the cost of other players
Theses terrorists strike out not because they lack for food, medical care or freedom, but because they identify with a group that has been oppressed or subjected to the whims of another power to which they don't identify or resent. It is especially effective if that other power conceptually conspires against their preferred way of life.
In other words, your measures would merely raise the standard of living, but would not eradicate the power differences that give rise to the fundamental fuel of terrorism. I would agree that it would reduce the incidence of terrorism overall, as it would become harder to find martyrs, but it would not eradicate the phenomena.