Whoa, that article was frightening. I would not doubt for an instant that just the method described has been (is being) employed somewhere.
To be honest, I'm conflicted on the issue of torture. My pragmatic self says, do what you have to do to get what you want. And as stated earlier, one "terrorist's" life for several "innocents", that's a no brainer.
However, my humanity says, there has to be another way to resolve the root cause of the terroristic act. Their actions don't happen in a vaccuum. And, rarely are there true angels or devils.
I know (or would like to believe) I could never (or at least in very few circumstances) be involved in the torture of another living thing. But I guess in the end, that's why we should leave the soldiering to the soldiers.