They took a beating. Iraq was no longer able to threaten neigbors with invasion, but had a large enough defense force to maintain internal security. Losses to elite units were nearly impossible for Iraq to replace, because of sanctions. Among the most degraded was their airforce and air defense from which they did not recover. Hence, in the second Iraq War, the US controlled the skies without any significant oppositon. The Republican Guard Tawakalna Division suffered greatly fighting a rearguard action at the Battle of 73 Easting; the formation was disbanded, because of heavy losses to men and equipment. Saddam was concerned about the causalties the RG endured, the negative impact upon moral, and feared a coup. The military became more about protecting the regime than projecting power abroad. He formed the Special Republican Guard to monitor the RG. He also formed the Fedayeen, a militia loyal to him.

http://www.gulflink.osd.mil/timeline/fast_facts.htm http://www.pbs.org/wgbh/pages/frontline/gulf/appendix/death.html