They've had martial law in pockets. No sense doing it for the entire country since most of the country is doing alright. The bottom line is this: Three distinct factions are going to have a tough time making hard or quick decisions. They've been in power for about a year? They have no sea legs. That is why we need to be there. The war is over. Now its about stomping out criminal, sectarian enterprises. Its best that the Iraqis do as much of that heavy lifting as possible. And in many cases they are. Look at SandRats daily posts to see that not everything is going to hell in a handbasket there.
Thanks, I picked up on some of that during my time there. Problems are only really in three provinces for the most part.