The same thing was done in WWII. I have many "Life" and other magazines from the era, including one with the Title America's War Dead that lists by name and hometown KIA up to the point of publishing...5 pages of small type.
That copy is from early 1943. The American people didn't lose heart then...why now? THAT is the question you need to ask.
The reason it bothers me, is the obvious attempt by CNN to use these dead in a political manner. This is the same CNN that has accused our troops of targeting civilians and journalists, and in the past accused the military of using chemical/biological weapons in Vietnam. Also, when was the last time you saw a positive report about the number of enemy killed? Or about Gitmo? And just how many more times do we have to see or read about Abu Ghraib (sp?)
During WWII, the reports of war dead were in a context of recognizing heroes who died for a great cause, and the reports served to stiffen American resolve so that these brave soldiers would not die in vain.
Today, the war dead are presented as lists of poor saps who died for Bush's corrupt relationship with Halliburton, and the message is that we need to stop our senseless and unwinnable action before more soldiers die for no real reason.
It's all about context. When CNN reports in their slanted fashion about war dead, it's all propaganda against what Wmerica is doing.