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They have mostly avoided direct confrontations with our escalation and its force projection into Baghdad, with a notable exception last week when they took on a patrol into a sunni neighborhood. That battle appears to have severely bloodied the combined iraqi and us forces, although there are not a lot of details.
They have increased operations outside of Baghdad, moving away from our force concentration and attacking us where we are weakest. Concurrently they appear to have increased shelling of the green zone to the point where everyone is now required to wear body armour at all times. This indicates that their ability to operate in Baghdad has not been hampered. Our death rate has basically doubled - as reported last week in the NYT.
The escalation, three months in, is a failure. As predicted, the insurgents have adapted and survived while our forces are now under even greater organizational pressure. This is the crisis that is now crashing down on the white house. They shunned the life saver tossed them by Bush Sr. and his Old Guard, went their own way, did their own thing, and it is not working at all.
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