no he did not really say that, did he?

I think context is important. The General was responding to a question about the military significance of recent casualties suffered by the Americans. Here's the unabridged quote:

"And I want to make sure -- first, I want to comment on the 11 individuals that have been killed. I will never downplay Americans being killed in combat. It is a very significant sacrifice, especially for their families. And that is significant to an individual's family, and I would never say anything different from that.

But from a military perspective, it is insignificant. They're having no impact on the way we conduct business on a day-to-day basis in Iraq."

*** End of Quote ***

This doesn't indicate callousness or insensitivity in my eyes. Sorry to take issue with my new-found friend Dingus, but my view is that it's a reasonable statement for a soldier to make in the circumstances.