U.S. Intelligence: "Al-Qaida Better Positioned to Strike the West"

How can this be? We were told that the war in Iraq was supposed to keep al Qaeda out of America. Now we are being told that the terror groups is "rebuilt" and ready to attack in the U.S. That was the whole rationale for us to remain in Iraq, so that they wouldn't follow us home. The opposite is now the case:

U.S. intelligence analysts have concluded al-Qaida has rebuilt its operating capability to a level not seen since just before the Sept. 11 terrorist attacks, The Associated Press has learned.

[...]Al-Qaida is "considerably operationally stronger than a year ago" and has "regrouped to an extent not seen since 2001," the official said, paraphrasing the report's conclusions. "They are showing greater and greater ability to plan attacks in Europe and the United States."

The group also has created "the most robust training program since 2001, with an interest in using European operatives," the official quoted the report as saying.

Our intelligence capability hasn't improved one bit since 2001. Why then did we create a department of Homeland Security?:

At the same time, this official said, the report speaks of "significant gaps in intelligence" so U.S. authorities may be ignorant of potential or planned attacks.

This leak could be an attempt by the White House to strengthen their hand at a time when they have almost credibility. But how does this negative news help them since the report is indictment of the administrations failed war on terror?