The MSM keep re-defining success so that they can declare the operation a failure. I think that things are probably going just as planned: Fallujah is no longer a symbol of defiance but of defeat for the Baathist and jihadis, and the insurgents are popping out of their holes all over the Sunni Triangle so that we can whack 'em.
Furthermore, the wheat is being separated from the chaff in the Iraqi forces; when this is over they will have a reasonably solid core of battle-tested troops to build on.
Exactly right.
Keep peeling the terrorist onion, until there isn't one.