... fucked up if true.

US should just drop a small nuke and do away with them, ar least massive drone strikes just wipe them out.  

its called war, and everybody tries to kill journalists.

Of course its true. The video shows them cutting his neck off and then showing his head seperated from his body. 

Cruel, extremely cruel...

On the other hand, I doubt that any capital punishment is fun to watch. I'd probably even personally rather choose decaptivation over the gas chamber, the electric chair, lethal injection, hanging etc.

And as horrible as that may sound: From their strategic point of view in this asymmetric conflict, I can even somewhat understand why they are doing this: It IS very effective. The video causes a huge propaganda effect, despite just a single person being killed. Why? Because it's a well known fact that the US (and probably most other western countries) is trying to present it's population the illusion of "clean" wars: People shall not see dead corpses etc., possibly not even coffins, for they know that even having a peek at the ugly side of war would significantly reduce the population's support for military actions.
The videos of the incident known as "Black Hawk Down" is a well-known example for this. Even in the movie adaptation they were removing certain parts that were considered too disturbing for the american public.

The U.S. could crush them if they wanted to,but to do that obama would have to admit that his policies did'nt work. So,he's just keeping them at bay. I don't pretend to be an expert in this,so I don't know what the answer is,but I know what fox news would want to happen.

Huh?  No, actually, no reasonable party in warfare is trying to kill journalists.  They are considered civillians, and killing them is very much frowned upon...

This will turn uglier and uglier.. The US won't back down and IS also won't back down.. IS isn't a small group.. Expect more of these gruesome videos

Dutch citizen fights for ISIS and made a lovely picture with a guy he beheaded..
British citizen fights for ISIS and beheads journalist from USA
Belgian citizen fights for ISIS and show videos on facebook torturing a Japanese citizen...
Etc..

Who or what to blame?

It was horrible but i sometimes wonder if people only care because the victim was American? Like victims of other nationalities to such groups don't matter as much.