Via Stephen Green, numbers published in the New York Times that we should keep in mind in the face of this difficult Ramadan:

[V]iolence against coalition troops has increased as the occupation has lengthened and, in regard to the all-important objective of winning Iraqi hearts and minds, unemployment rates are still too high. However, most other trends are encouraging — declining crime rates in Baghdad, increasing numbers of Iraqi police officers being trained, and telephone and water services at about 80 percent of pre-war levels. Once one accepts the premise that the United States and its partners are still at war in Iraq, and that the mission there is clearly the most challenging American military operation since the Vietnam War, the most accurate long-term outlook is one of guarded optimism.

As I've been saying for months - ditto.