You paint a nice picture -- I hope you're right!
Like you, I suspect and hope that Iraqis aren't stupid -- I hope they'll recognize the source of their pain (Saddam), and the source of their freedom (the United States of America). I hope things will work out well for them in the future -- that will benefit them, and benefit us also.
Places like Iraq, Afghanistan, Jordan, Lebanon and Iran were thrown together based on rough considerations of language, physical features like rivers and mountains, religious or ethnic commonality ... but mainly, it was divied up by the desires of who could be counted on as a client of the United States and who was going to be a client of the Soviet Union.
OK ... Despots, Communists, shahs, sheiks and military strongmen on your mark, get set ...
The Iraqis will be ok, they're secularized and have a pretty solid infrastructure. The Iranians are educated and many are Westernized, they'll be fine. Pakestanis are 20th century authorized. The Turks and Jordanians are ahead of the game and moving on up. The Palestinian state? Oh oh. They will have a population with less: aggregate education, productive economic skill and experience, enlightened political awareness, beneficial social tools and future success prospects than even that collection of brain-quagmired "Sweathogs" from "Welcome Back Kotter."
Palestinian state? What is going to be their main economic export, suicide bombers? Dead body street parade event planners? That situation is hopeless ... we should send them to Mexico. Nah, Mexicans don't deserve an influx of non-languaged foreign interlopers offering dirt cheap skilless labor and providing the natives nothing but a massive government burden.