I agree, and I would rewite this as well:
A renewed uprising among the country's majority Shiites would cause severe problems for Iraq's fledgling interim government as it tries to gain popular support and for coalition forces that are already struggling against Sunni militants.
"Routing Sadr's thugs by killing them by the carload would cause serious problems for the terrorist forces and assist the stabilization of the Iraqi regime"
Yes. The stories have all been pretty slanted. The only problem I see is where to hold the 1200 guys who surrendered just now.