Seymour Hersh answers the question, "Where is the Iraq war headed next?" in this New Yorker article:

"There are several proposals currently under review by the White House and the Pentagon; the most ambitious calls for American combat forces to be reduced from a hundred and fifty-five thousand troops to fewer than eighty thousand by next fall, with all American forces officially designated “combat” to be pulled out of the area by the summer of 2008. . ."

"A key element of the drawdown plans, not mentioned in the President’s public statements, is that the departing American troops will be replaced by American airpower. Quick, deadly strikes by U.S. warplanes are seen as a way to improve dramatically the combat capability of even the weakest Iraqi combat units. The danger, military experts have told me, is that, while the number of American casualties would decrease as ground troops are withdrawn, the over-all level of violence and the number of Iraqi fatalities would increase unless there are stringent controls over who bombs what.

“We’re not planning to diminish the war,” Patrick Clawson, the deputy director of the Washington Institute for Near East Policy, told me. Clawson’s views often mirror the thinking of the men and women around Vice-President Dick Cheney and Defense Secretary Donald Rumsfeld. “We just want to change the mix of the forces doing the fighting—Iraqi infantry with American support and greater use of airpower."

Hersh discusses his article in this interview.