How the people of Iraq view this is critical. How the American people perceive this is less important IMHO.
In the Tet example the press misrepresented the early fighting and then failed to self correct as the US forces regained the initiative. Democracies wage war in fits and starts and American public opinion was the deciding factor.
Here the Iraqi government has the initiative because they began the offensive against Sadr. The press is trying to portray this as a loss for the good guys, or at best a draw, and those who seek our defeat in iraq are being sucked in by the misrepresentations current in the western media.
Sadly for the press, there are simply too many alternative sources of information now. Wretched, for example, got me through my son’s two deployments in Iraq by explaining the battles in clear, insightful terms. Few of the traditional media outlets can lay claim to such.
Now, how will the citizens of Basra perceive this? My belief is that they will ultimately come to recognize that Sadr’s vision of the future is simply not desireable. Yes there is fighting in their city now, but once that’s over the infrastructure will be rebuilt and the city will return to vibrancy. Sadr cannot build roads and sewers. He cannot provide electricity or clean water or jobs (unless one is OK with the job title “Thug").
As Wretchard describes we will have a hudna of sorts. The initial assault is over. Now the people of Basra have to chose. It looks like a slam dunk to me. Sadr is safe in Iran, his allegiances are tainted and the misery caused by his mahdi army is already evident. No, he’s not a baby baking Al Q guy, but he still cannot match the central government’s ability to restore civil society.