Yes they do. And the .223 is a very effective round in open desert, but most of that type fighting has long since passed. Reports I am getting are that in urban combat the .223 is insufficiant in mass to penetrate (and kill the bad guy on the other side) cover such as cinderblock walls.
Another problem is that our weapons tend to dislike sand and dirt. The AK is famous for working after dumpin a bucket of sand thru it. On the other hand our weapons are far more precice for targeting.
One fellow I know just reported that 4 insurgents unloaded thier AKs on them and missed them all.
They killed all 4
The "lets wound them and stress their resources" argument is gone with our current enemy as well.
I am guessing it's a treaty or something, but why don't we use hollow or soft points? Light, fast, FMJ might be good for venison...