I have puzzled over the lyrics for years - one of my favourite songs as sung by Warren in spite of the German voicing.
Your view does not mesh with Cohen's comments - that the lyric reflects a terrorist's vision in some way.
My interest was rekindled by a US news anchor using "the beauty of our weapons" as somehow justifying the attack on the Syrian air base. Our missiles are so beautiful ... how can we not use them to destroy things.
It seemed to me he had distorted the lyric in a very disturbing way.
In any case, it means what it means and your slant was helpful.
David Alpaugh's article: "The Plot Against My Favorite Leonard Cohen Song"