More thoughts on that CIA report, from a fella on the ground, including this, from the report, which seems to support the current efforts in Iraq:

A counterterrorism strategy that approaches the problem on multiple fronts offers the greatest chance of containing—and ultimately reducing—the terrorist threat. The development of more open political systems and representation, broader economic opportunities, and empowerment of Muslim reformers would be viewed positively by the broad Muslim communities who do not support the radical agenda of Islamic extremists.