Instapundit linked up this article talking about what the author, at least, thinks are signs Iraq is in fact progressing nicely:

The Iraqis are now free to debate all aspects of their individual and national life. The fact that different, often conflicting views are now expressed without fear should be seen as a positive achievement of the liberation. Democracy includes the freedom to demonstrate, especially against those in charge, and to “tear each other apart” in the media and town-hall political debates. It also includes the difficulty of reaching a consensus on major issues. Those who follow Iraqi politics would know that Iraq today is the only Arab country where all shades of opinion are now free to express themselves and to compete for influence and power in a free market of ideas.