Well, yeah this is a bad thing. But there is no way in hell that this happened because Al Qaeda was "thinking that since they're not getting very far in Iraq (other than just getting killed) its time to branch out and start attacking other places."
First off, Al Qaeda has many members and is not all in Iraq, or Saudi Arabia, or anywhere else. The idea that they are just in Iraq, lured there by America so that they don't have operations anywhere else is laughable.
Secondly, many of the terrorists in Iraq are not Al Qaeda, and not foreign to the country. Of the first 1,000 insurgents found in Fallujah after the recent military campaign there, only 15 or so weren't Iraqi.
So this has nothing to do with Al Qaeda being frustrated with Iraq (I mean, the insurgents are doing a bang up job in Iraq, its a disaster there). The terrorists are really getting quite far in Iraq. They were never limited to Iraq, however, and this is just another branch of their operations.
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