Not the gloom and doom narrative you find in the MSM, in fact rather opposed to their view:
"[M]orale among our guys is very high. They not only believe that they are winning, but that they are winning decisively. They are stunned and dismayed by what they see in the American press, whom they almost universally view as against them. The embedded reporters are despised and distrusted."
Interesting look at the overall tactical situation in Iraq by Cliff May at The Corner at the conservative National Review Online–a magazine few media subscribe to, altho they all get The [liberal] Nation. Worth a read.
UPDATE Well I was fooled and I don’t appreciate it one bit. I have emailed The Corner to see what they have to say about this, although I don’t see any effort on their part to claim it is new, when it is more than a year old, but they didn’t point out that it was old, either. Thanks a bunch, NRO.
THE TEXAS SCRIBBLER 
He’s quoting an unsigned email that’s been circulating for over a year now. See here, for example.
Right you are. I’ve emailed The Corner about it. But from the way the troops treated Lurch on his recent visit, and other things I’ve read, I suspect at least the morale part hasn’t changed. Thanks for the pointer.