The security situation is worse and worse as few will be surprised to hear. This remains true even if one looks below the surface at more detailed indicators, like increasing civilian casualties and an enormous increase in the crime rate, than just the daily military death count.
The economic situation is still bad news overall. No new salient infrastructure (despite America's huge investment- where has all the money gone?), no jobs and growing poverty. Any progress here and there has been too slow to help defuse the insurgency, at all.
The political situation is in greater confusion than since the end of official war. Various opinion polls show that public optimism, in terms of Iraqis' views about their personal and country's future, has greatly diminished. The referendum process has estranged Sunni Arabs even further. They still form the core of the insurgency, and bringing them into a national government seems more unlikely than ever.
The unwarranted American aggression in Iraq and it's incompetent management have created chaos which will not be solved by continued occupation. The Iraqis are going to fight it out amongst themselves one way or another, eventually.
There is no longer reason to hope for progress in Iraq. The time for America to get out and out of the way is now!
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