It seems to me the best way to solve the Iraqi situation is to hold fast in Iraq for another 6-8 months. They are going to have to anyways, so might as well suck it up, put some reinforcements in there, and shore up their losses for the short-term.
At the same time, they should continue their police/army recruiting in Iraq, but instead of keeping them centralized in their training camps in Iraq, export the trainees to a neighbouring country for all their training (think the clones from starwars) If they can't smuggle in explosives, they will have a lot harder time disrupting training/graduating. At the same time they are training their new army/police force, they should setup serious military support/defenses around the police stations and build them like fortresses.
Then, in 6-8 months when they have a fully trained army of a few thousand Iraqis they bring them back into the country, install them into their new fortresses, and pullout.
At the same time, they should continue their police/army recruiting in Iraq, but instead of keeping them centralized in their training camps in Iraq, export the trainees to a neighbouring country for all their training (think the clones from starwars) If they can't smuggle in explosives, they will have a lot harder time disrupting training/graduating. At the same time they are training their new army/police force, they should setup serious military support/defenses around the police stations and build them like fortresses.
Then, in 6-8 months when they have a fully trained army of a few thousand Iraqis they bring them back into the country, install them into their new fortresses, and pullout.