Update
All travel of US Civilians outside of the Green Zone is stopped. (Blackwater and other contractors accompany these trips most times)
The Iraqis are backing down from revoking Blackwater's license.
Iraq's investigation indicates that Blackwater fired at a unarmed family and there were no insurgents shooting at them. 20 Iraqis died.
Muqtada Al-Sadr is exploiting the incident for PR value
An
additional article of atrocities committed by contractors over the last few years that went unpunished. In one case, Blackwater employees who reported one atrocity were fired.