From Islam Q & A (thanks to Goon) comes this “Ruling on Jihad and kinds of Jihad.” It is quite lengthy and revealing, and accords with traditional Islamic theology on jihad. The different stages of revelations to Muhammad about jihad are explained, concluding with this:
After jihad was enjoined upon him, the kaafirs [unbelievers] then fell into three categories: those with whom there was a truce or peace treaty; those with whom he was at war; and those who lived under the rule and protection of the Islamic state.”
The truce is temporary, so there are really only two choices for unbelievers: war, or subjugation. This is the ideology motivating jihadists around the world today.