"Since the multiple bombings in Shroja market district on the 12th, Baghdad hasn’t seen any major attacks and there’s a tangible decrease in all kinds of attacks."
http://iraqthemodel.blogspot.com/

It seems that most terrorist left Baghdad and they covered their retreat with series suicide bombing, Shroja market being major one.
This seems to be a reasonable response to the proposed surge, and therefore it seems reasonable that they will regroup to fight another day. Their problem is they are running out of time. Their retreat wasn't good for their image, but their image is so thrashed, it doesn't make much different, it's just the slow drip of them losing this war. They can't win in Iraq; their attempt at starting civil war has failed.

So far Iraqi security forces have lost at least 6134 and of course much more have been injured.
The non-Iraq coalition forces have lost: US 3133 and 23,417 wounded, and all other Coalition members have lost 256 [with UK having large majority of this]
http://www.icasualties.org/oif/

It's very likely that the number of bad guys killed exceed the combined total of all Coalition forces- maybe 2 or 3 times as many. And probably the total captured exceed this. Though there were probably few of the bad guys who escaped wounded- because they never were able to take and hold any ground or have much in terms having a hospital.

War will of course continue in Iraq as it will in Afghanistan and elsewhere. Even if the terrorists were to completely leave Iraq one could expect a high level of violence to continue for some time. The terrorists may wait and regroup and plan for a major attack, and then when the general violence lowers and Iraqi start thinking the war is over and they can live in peace, the terrorist may then launch a massive attack- to do this to cause a general sense of hopelessness and begin more general violence. They can also hope the Iraqi or other political leaders will make mistakes, and they exploit these mistakes.