Iraqi terrorists have attacked Arab diplomats before, and experienced a very negative response from the Sunni Arab community (the only base of support the terrorists have in the country). These kidnappings are seen as madness, and the kidnapping of an Egyptian diplomat over the weekend was promptly criticized by Iraqi Sunni Arab groups known to support the terrorists. Two more Arab diplomats were attacked as well. While some terrorist groups feel that it is possible to scare Arab diplomats out of Iraq, most do not. This strategy is a long shot, because the Sunni Arab terrorists in Iraq really don't have much support, at least at the government level, in other Arab countries. Al Qaeda is opposed to all current Arab governments, but most of their Sunni Arab allies in Iraq are not (they want Saddam, or someone like him, back in charge). It's a strange situation.
Iraqi soldiers are increasingly taking the lead in finding, and seizing, terrorists. West of Baghdad, 600 soldiers, and 250 American troops, raided up terrorist hideouts and arrested over a hundred suspects. With a growing number of Iraqi security personnel in action, and growing anger, against the terrorists, by Sunni Arab Iraqis, more and more of the terrorists are being informed on, and getting arrested or driven from hiding place to hiding place. The terrorist bombing attacks continue, but in a more disorganized manner. There is also a lot less of the threats and assaults by terrorists (against Iraqis supporting the government.) With more Iraqi cops out there, it's easier for civilians to call in help against terrorist pressure.