I used to think that this tactic was only justified by Islamists to kill Jews (in Israel) or Christians (in the US, Britain, Spain, etc.). Now it seems to be religiously permissible to kill fellow Muslims in Iraq, Pakistan, Jordan, etc.) This one exploded prematurely at a checkpoint but may have been headed for a Shia Muslim procession nearby.
It is a very effective tactic. Traditional guerrilla groups (occupied countries in WWII) targeted the occupiers, not the civilian population. While they were somewhat effective, they hardly had the success that groups in Iraq are enjoying. I wonder why the French resistance did not think of the idea of blowing up their own countrymen in order to put pressure on Germany to cease the occupation.
So many things have changed in terms of media since WWII that a more realistic example might be Yugoslavia. Could Slobodan Milosevic have caused enough public outrage against the NATO bombing campaign if he had launched a campaign to kill large numbers of Serbian civilians in protest against NATO's actions? Instead he just slaughtered Muslims and fought with Croats and others which just reminded everyone why he had to be dealt with.
http://news.bbc.co.uk/2/hi/south_asia/6309965.stm