We'll find out if reform is what it takes, no one really knows for sure. What we do know is that the way the world went about dealing with it for the past 30 years was certainly not working, so something had to change.
The fact that Iraqi "insurgant" groups (with exception of Al Sadr) are signing treaties with the Iraqi Governing Council and the Coalition shows that even those groups have some sort of idea that this could perhaps be the correct fork in the road for their future. To me, that says a lot; look at Palestine and Israel, you've seen nothing of the sort from Palestine towards Israel, yet we're already seeing cooperation from "insurgants" in Iraq.
Time will tell, it's too complex of a problem to just understand in one week, year, or decade. We'll look back 20 or 30 years from now and find out if the worlds new idea on how to deal with terrorism and the middle-east, lead by America; turned out to be the correct choice.
We've been pretty good at doing this kind of stuff in the past, so I'll take our record to the bank and go out on a limb and say that in 25 years we'll look back and see that this time was a time when it turned for the better; not the worse.