We are not losing Iraq because "Arabs are incapable of democracy". That is a racist and empirically untrue excuse. Besides, there is nothing that Arabs have done that Europeans haven't done worse. Ethnic violence? Civil war? Religious extremism? Genocide? Please. Iraqis are amateurs compared to the Europeans. Now the Europeans have taken a break for what, one generation in two millenia? And suddenly they are the pinnacle of human existence?
Moderating and democratizing the Middle East is going to take less time than the Cold War. That is my prediction; one that I unfortunately dont have time to explain right now. Just figured I'd say something optimistic for once.