Things aren't as bad as reported???
That's what most military personnel I talk to say. Sure we hear about violence in Iraq, car bombings, shootings, etc, but look at the economic side of things. The number of cars on the roads, satellite dishes, licensed businesses, oil production, foriegn currency reserves are all greatly increased since the invasion.
The North of the country and the South are fairly stable. It's only parts of Baghdad and sections of Anbar that are a real problem. Is this enough of a reason for the rise? I don't know, but something appears to be working right.