They are doing better than before the war because they have unlocked leverage they didn't have before and now have proven survival strategies for their two biggest threats: war with the US/Israel and massive armed protests.

Yes thousands have died from the war. You say they can stomach that more than the US but for them it is a defensive war. The US could stomach such losses in a defensive war, but an offensive war against an enemy that has never once attacked US soil is a different matter