The way we need to fight these insurgents is the same way Saddam Hussein fought them - you not only kill them, but you kill their entire family - you bring down the whole family tree right down to the family pet. Then you drape them in pigskins and put them on public display - these people are terrorists, enemy of 'peaceful Islam.'
Now, at the same time, you get Halliburton contractors out of there, and you have Iraqi companies staffed by Iraqis rebuilding their own country under our supervision. You give them jobs, you pay them well more than they were paid during Saddam, and you let them take charge of their destiny. This is all while you block Al-Jazeera signal and Al-Arabiya and broadcast how things are REALLY going - schools improving, how electrical grids are now better, installing new towers, and you praise those hard-working Iraqis who made a choice to rebuild their country. You also broadcast your intentions to leave and you start reducing REGULAR troop levels, while bringing in special forces to deal with insurgents. You bring them jobs, you bring them money, and you deal with insurgents HARSHLY by THEIR standard, and that would be the end of it.
The problem with this plan is that it calls for gory ways - something that our nation cannot deal with. Imagine the public outcry here if we killed some insurgents and then executed their families, draped them in pigskins and left them out on display like that. To us, it's repugnant, immoral, etc.
You have to fight a war at its lowest common denominator which in this case is insurgents. We have the know-how to beat them in their own game. We choose not to do it for political reasons.