We had no chance to really "work" with the Iraqi people before toppling Saddam. We could only slip so many agents in without their being detected, and Saddam sure wouldn't have given permission if asked if we could please send 22,000 agents in to work with the Iraqi people.
Something tells me he might not have said these things QUITE as Reuters spins them.
You are correct - Reuters is spinning comments that are quite unremarkable in order to make them seem like an admission of failure calling for a major change of direction. But Perle really doesn't do that at all; he just repeats some obvious truths and restates our basic objective of turning power over to the Iraqis ASAP.