I think that is the ideal solution. The arabs/persians already hate the Israelis, so whats the harm.
The harm could be that Iraqi airspace would be used to get the Israeli Air Force to Iran- both ways. And that would require the consent of both the Iraqi govt. and the U.S.
I'd worry about a million whacked out Iranian soldiers streaming into Iraq in the aftermath- they've done it before. And don't think the "world" wouldn't be on their side given the situation.