Strategy Page has an analysis of the current political situation in Iraq. Here's an important excerpt:
The struggle to write a new constitution by the August 15 deadline is focused on issues like the power of conservative Islamic religious organizations (who want control of the courts, and lifestyle) and autonomy of the Kurds (and exactly how large "Kurdistan" will be). All the Islamic conservatives (Shia and Sunni) fear democracy, for they know that most Iraqis do not support the conservative Islamic lifestyle. The majority of Iraqis (the 80 percent who are Arabs) do not support a lot of autonomy for the Kurds either. And by next summer, the Iraqi armed forces will be some 250,000 troops and police, with armored vehicles and warplanes. The Peshmerga will still be about 100,000 men, armed with light weapons. The U.S. will not allow the Peshmerga to get heavier arms. A war with the Kurdish and Shia militias will eventually be hopeless for the militias.
Eventually, the Kurds and Shia religious conservatives will have to work out a compromise with the majority of Iraqis. But first the Sunni Arab terrorists have to be destroyed. That won't take much longer, because the Iraqi security forces get stronger month by month, and more and more Sunni Arab leaders abandon support (active or passive) for the Sunni Arab rebels. But never forget that Sunni Arab terrorists are only the first act in the struggle to create a democratic Iraq. The second act involves dealing with Shia religious conservatives, and independent minded Kurds.
Nobody said it would be easy, but if it happens in Iraq the whole world will change. If it fails, the Islamic world will descend into a chaos which will reverberate across the globe.