Wretchard the Cat at Belmont Club has a characteristically content-filled roundup of the Iraqi and Coalition counter-offensive against the so-called “insurgents”. In short, the Coalition spent the past year and a half building information networks and resting up for this effort, of which Fallujah was just the opening battle. The insurgents who escaped are now on the run and off balance, and the Coalition, now greatly enhanced by the new Iraqi forces (the Americans were always careful about targeting mosques; now the Iraqis themselves can cleanse them of bombs and guns) is keeping up the pressure.
See also this Chicago Tribune article about the savagery and barbarity of the “insurgents” (Hat Tip: Power Line).