There are so many other ways you can prevent such attacks. Diplomacy, commerce, keeping good relations, etc. The threat of an axe on your neck makes it hard to look like you have good intentions in the first place.
The problem is you can't always assume that the other guy has good intentions. If they're rational, then mutually assured destruction keeps everyone rational. If they're crazy, then that certainly is a problem, which is why there is enormous effort put into preventing proliferation and containing the capabilities of countries like North Korea and Iran.
The ability to drop a bunch of nukes on someone on short notice is not to deter terrorists, it's to deter nation states - anywhere between North Korea through Pakistan.
The existence of nukes and the submarines that carry them is almost entirely orthogonal to the (relatively new) thread of terrorism.
I realize it's a circular argument, but MAD is for other nuclear nations (or future nuclear nations).
MAD wasn't just about deterrence, but also about ensuring mutual access to early warning information. The combination of the two is actually not a bad thing. "I know you can destroy me if I attack you, and I know you can see me if I start to do so" is not a bad set of factors. Unfortunately things like anti-satellite missiles and weapons in space really endanger that because if a small piece of space junk collides with a satellite over the other guy's territory, you may not know for sure that this is not the prelude to an attack.
So the actual MAD strategies as they developed through the Ford years were actually quite sophisticated and stabilizing. But what happens when your threat is a nuclear weapon in a twenty-foot container instead of an ICBM (because some country like North Korea knows we can have 747's with lasers shoot down launching missiles if we launch a first strike)?