The war in Iraq has become a proxy war with Iran... (update)

The NY Sun has the story of Iran's Secret Plan for Mayhem:

Iran is supporting both Sunni and Shiite terrorists in the Iraqi civil war, according to secret Iranian documents captured by Americans in Iraq.

The news that American forces had captured Iranians in Iraq was widely reported last month, but less well known is that the Iranians were carrying documents that offered Americans insight into Iranian activities in Iraq.

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Iran is working closely
with both the Shiite militias
and Sunni Jihadist groups

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An American intelligence official said the new material, which has been authenticated within the intelligence community, confirms "that Iran is working closely with both the Shiite militias and Sunni Jihadist groups." The source was careful to stress that the Iranian plans do not extend to cooperation with Baathist groups fighting the government in Baghdad, and said the documents rather show how the Quds Force — the arm of Iran's revolutionary guard that supports Shiite Hezbollah, Sunni Hamas, and Shiite death squads — is working with individuals affiliated with Al Qaeda in Iraq and Ansar al-Sunna.

Victor Davis Hanson has two options for us in Iraq in A War of Endurance:

One, we can withdraw ground troops and return to punitive and conventional bombing — tit-for-tat retaliation for each attack in the future. That way, the United States stays distant and smacks the jihadists on their home bases below. Few Americans die; terrorists sometimes do. The bored media stay more concentrated on the terrorists' provocations, not on our standoff response from 30,000 feet in the clouds.

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Prosperity, security and liberty
are the death knell to radical Islam.
It's that elemental.

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Or American forces, at great danger, can continue to change the political and economic structure of the Middle East in hopes of fostering constitutional governments that might curb terrorism for generations. This current engagement demands our soldiers fight jihadists on their vicious turf, but by our humanitarian rules. For this, we must pay the ensuing human and materiel price — all broadcast live on the evening news.

He concludes:

Imagine this war as a sort of grotesque race. The jihadists and sectarians win if they can kill enough Americans to demoralize us enough that we flee before Iraqis and Afghans stabilize their newfound freedom. They lose if they can't. Prosperity, security and liberty are the death knell to radical Islam. It's that elemental.

That's as good an analysis as I can find.

Update: Glenn Beck discusses the gathering storm with Winston S. Churchill...