...a free democratic Iraq with a non-sectarian government that can defend itself, is not a threat to its neighbors and is an ally in the war on terror.
Are you sure this shouldn't read
"...three democratic Iraqs with governments that can defend themselves, are not a threat to their neighbors and are allies in the war on terror."
I say that because you mentioned the model of Kurdistan as the reference point. Kurdistan has it's own flag, military, police and government. It is an ethnnocentric entity. Modeling Iraq on the Kurdish north will produce three little ethnically different Iraqs, not one happy republic.
Kurdistan is also a full partner in the national government.