So I first heard of this story through blogdex links to an Iraqi blog with photos of a demonstration against terrorism and resistance in Iraq. Varying reports state an attendance of 5000 to 20,000 people.
There's been very little coverage of this in the Western media. I think there have been some TV reports now, but I can only find two mainstream media stories on the web, from Knight-Ridder and AFP. Here's a column about it from an MSNBC analyst, though.
I was reading yesterday about how we're using Israel-style tactics in Iraq now, like knocking down buildings that harbor terrorists, fencing off whole villages to set up checkpoints, and holding relatives of terrorists hostage. It's quite scary that we're going down that road, but I think there are plenty of major differences between the two situations, and so I remain hopeful.