Here is what I found out about the two main issues:
- Compared to earlier this year the fighting between Shiite and Sunni is intensifying. This struggle is still shaping politics, and is also ruining the economy. It is increasingly Iraqis versus foreign rebels. The Iraqis are fortifying the border as other countries are sending yet more fighters to the border who are ready to join the rebels.
- The U.S. government is (of course) still spending a lot of money, and apparently doing so habitually rather than trying to be creatively efficient in its use. Its plan is stable and threatened primarily by expenses.
UPDATE: Interesting discussion about Iraq in the comments to this post about Israel and Lebanon.