Well now what ? How demoralizing is this to military morale ?

There should be a UN peacekeeping force occupying Iraq. The Saddam Hussein regime violated an UN resolution and the UN would not act. This forced the US to act without the UN's imprimatur. If the world wants stability within Iraq, the UN needs to place peacekeeping forces there with a mandate to eliminate threats to the security of the democratically elected Iraqi government. Else, there will continue to be fighting until all the fighters on one side or the other are dead. Economic prosperity is the key to reducing the number of people who will fight against us. We need to offer more aid in the economic development of nations who think of us as "evil." This same idea wouldn't hurt us domestically, either.