As I've mentioned before, it looks like Iraq will be a non-starter for the Democrats this fall, particularly since things have gotten so much better.
Though there are still pockets of insurgent activity, they are limited to a few areas and seem less coordinated than in the past. Al Qaeda has been all but wiped out as an effective force, particularly once Iraqi Sunnis turned on them once Al Qaeda started murdering Sunnis. Sunnis have started taking an interest in government, both local and national, having come to realize it's one of the best ways to make their voices heard.
Shiite militias have also come under increasing pressure by US forces, the Iraqi military, and Shiite leaders in Iraq. While some renegade bands of Shiite militiamen are still planning and carrying out attacks in Baghdad, their activities in Basra have all but ceased, particularly after Iraqi Army forces carried the battle to them and proved to be an effective force. Moqtada al Sadr extended a cease fire, more than likely realizing he was losing followers to effective Coalition and Iraqi countermeasures while antagonizing the people he purportedly was “protecting”. It didn't help his credibility that he was still in Iran after fleeing from Baghdad, knowing Coalition forces were closing in on him.
It's not often we hear reports from the MSM any more about how bad things are in Iraq. In fact, we hear very little from the media about anything happening in Iraq these days. Only one network, ABC, has actually made an effort to show some of the progress that's been made there, though they still couch it in tentative terms.
An issue the Democrats thought would usher them into the White House has instead turned into a non-issue for the American voters, leaving the Democrats to scramble to find some other ills, most of their own making, to blame upon the GOP.