Marc Lynch has an excellent Comment is Free overview of the diminishing fortunes of the Islamic State of Iraq:

Four events within Iraqi Sunni politics over the last week stand out as worthy of attention. First, the 1920 Revolution Brigade split, and changed its name to "Hamas Iraq". The rump faction stressed its Iraqi focus and reassured its Arab neighbours that it had no intentions of pursuing jihad further afield. Second, a meeting of Sunni Iraqi clerics in Amman agreed to form a Council of Iraqi Ulema empowered to issue authoritative fatwas, implicitly criticizing the rulings regularly issuing from the al-Qaida in Iraq leadership. Third, an influential jihadist commentator, Hamid al-Ali, issued an opinion critical of the Islamic State of Iraq. Most importantly, on Thursday the Islamic Army in Iraq - one of the largest and most influential of the insurgency factions - issued a scathing public denunciation of the Islamic State of Iraq and its self-styled caliph, Abu Omar al-Baghdadi.

I'd say something more, but Kriston is playing Ras Kass's "Nature of the Threat," which isn't conducive to proper counterterrorism blogging. Anyhow, Marc's got this well in hand.