On the military and economic fronts, things are still moving forward. The Political front seems to have some issues. I'm pretty sure the Al Qaeda's allies in our government will seize on this part to try and surrender, once again. I'm not reading it as a failure though. A setback, but not a failure.
The Political side - Lots of cabinet members dropping out of the central government. According to Omar at Iraq The Model, it's a combination of different groups dropping out of the process for differing reasons. In his post The Untimely Recess from Sunday, August 5th, it appears to be mainly the anti Maliki groups wanting to shut down progress to get him ousted, and Al Sadr's group wanting our Congress to pull our troops out. Omar thinks that what's needed is a change in the political class as soon as the ever improving security situation allows for early elections. That makes some sense to me, especially if you take into account the people in the provinces that are now wanting to take part in the government.
Polls over the weekend by the old media have found that the popularity of the war is increasing. NBC had to run their poll twice, because they didn't believe the first result. I bet it's still going to be reported as "the ever waning support" of the war, though. Still, the old media has started to report on what we've been watching and Joe Blow couch potato could actually be sensing that this is winnable. That's going to be a real pain to the Murthas, Reids, Pelosis, Obamas, Clintons, etc. etc.. I believe they are going to shift their talking points over from security in Iraq isn't happening, to the political process in Iraq isn't happening, and then try to force a "surrender at all costs" again though.