Bet you didn't read about this in your morning newspaper or hear of it on the evening news:
The insurgents are still capable of devastating destruction, but their targets grow softer and softer. Their attacks on Americans are generally thwarted or futile, and they haven't been able to successfully attack an Iraqi police station in months. The only way they can do harm, consistently, is by launching suicide attacks against civilians. It's no wonder that they've alienated most of the Iraqi population and much of the Arab world.
There are more details at the link.