You're absolutely right, a moral victory against will not be
easy to achieve, but there is absolutely no other way.
To use a phrase from Vietnam, the US can defeat all comers
militarily in Iraq, and still lose the war. It has realised the,
albeit belatedly, which was why they have halted their offensives
in Falluja and against Moqtada Sadr, and started trying to work
towards a political settlement WITH the UN's and the Iraqis
involvement. That is a start, whether this Administration has the
smarts or understanding to follow through is another matter. But
I'll say this again, there is NO military solution to Iraq's
problems, and there is also NO unilateral US solution to the same
problems.
For the Palestinian problem, the issues are tough, but not
insurmountable. However, the Americans MUST realise that this can
only happen if they start being honest brokers. Otherwise, there
can never be a true negotiated settlement. The previous accords
were good starts, but both sides allowed extremists to hijack the
agenda due to mutual mistrust. If anything, I would say it was the
assasination of Rabin and the rise of Netanyahu and Sharon that was
the main cause of the failure of the peace process.
Only by solving these issues, can there be a military and political
solution to the War on Terror.