And just how is Iraq doing these days?

Lots of cold. clear-eyed views of Iraq today on the site Today in Iraq. The New York Times excerpt here sums up the occupation situation quite nicely:

In Iraq, the list of places from which American soldiers have either withdrawn or decided to visit only rarely is growing: Falluja, where a Taliban-like regime has imposed a rigid theocracy; Ramadi, where the Sunni insurgents appear to have the run of the city; and the holy Shiite cities of Karbala and Najaf to the south, where the Americans agreed last month to keep their distance from the sacred shrines of Ali and Hussein. The calls are rising for the Americans to pull out of even more areas, notably Sadr City, the sprawling neighborhood in eastern Baghdad that is the main base for the rebel cleric Moktada al-Sadr. There, leaders of his Mahdi Army are demanding that American soldiers, except those sent in to do reconstruction work, get out. Negotiations with rebel leaders foundered last week on precisely the issue of the freedom of American soldiers to enter the area; the Iraqi government, possibly with American backing, refused to accept the militia's demand. Even so, the point seemed clear enough: where Iraqis once tolerated American soldiers as a source of stability in their neighborhoods, they increasingly see them as a cause of the violence. Take out the Americans, the Iraqis say, and you take out the problem. Leave us alone, and we will sort our own problems.
(emphasis added)